EN
Insiders Could Have Profited By Holding onto Nature's Sunshine Products Shares Despite 16% Drop
Nature's Sunshine Products, Inc.'s (NASDAQ:NATR) value has fallen 16% in the last week, but insiders who sold US$2.1m worth of stock over the last year have had less success. The average selling price of US$22.29 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Nature's Sunshine Products
Over the last year, we can see that the biggest insider sale was by the Executive VP and President of Europe & Latin America, Bryant Yates, for US$475k worth of shares, at about US$24.35 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$10.26. So it may not tell us anything about how insiders feel about the current share price.
In the last year Nature's Sunshine Products insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Nature's Sunshine Products
I will like Nature's Sunshine Products better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Nature's Sunshine Products Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Nature's Sunshine Products insiders own about US$7.6m worth of shares (which is 3.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Nature's Sunshine Products Tell Us?
It doesn't really mean much that no insider has traded Nature's Sunshine Products shares in the last quarter. The insider transactions at Nature's Sunshine Products are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Nature's Sunshine Products.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.