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Potential Immersion Corporation (NASDAQ:IMMR) shareholders may wish to note that the CEO, President & Chairperson, Eric Singer, recently bought US$358k worth of stock, paying US$7.51 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.4%.
The Last 12 Months Of Insider Transactions At Immersion
Notably, that recent purchase by CEO, President & Chairperson Eric Singer was not the only time they bought Immersion shares this year. Earlier in the year, they paid US$8.77 per share in a US$438k purchase. That means that an insider was happy to buy shares at above the current price of US$7.46. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$981k for 118.79k shares. But insiders sold 4.95k shares worth US$53k. In total, Immersion insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Immersion
Immersion is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Immersion Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.6% of Immersion shares, worth about US$21m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Immersion Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Immersion insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Immersion. At Simply Wall St, we've found that Immersion has 4 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.