Anyone interested in USANA Health Sciences, Inc. (NYSE:USNA) should probably be aware that the Chief Financial Officer, G. Hekking, recently divested US$135k worth of shares in the company, at an average price of US$29.61 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.
We've discovered 2 warning signs about USANA Health Sciences. View them for free.The Last 12 Months Of Insider Transactions At USANA Health Sciences
Over the last year, we can see that the biggest insider sale was by the Founder & Chairman Emeritus, Myron Wentz, for US$713k worth of shares, at about US$47.79 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$29.74). So it may not shed much light on insider confidence at current levels.
In the last year USANA Health Sciences insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for USANA Health Sciences
I will like USANA Health Sciences 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 USANA Health Sciences Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. USANA Health Sciences insiders own 41% of the company, currently worth about US$231m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About USANA Health Sciences Insiders?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing USANA Health Sciences. Case in point: We've spotted 2 warning signs for USANA Health Sciences you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.