Nu Skin Enterprises, Inc. (NYSE:NUS) insiders have profited after buying stock worth US$2.0m last year, current gains stand at US$62k

·3 min read

Insiders who bought Nu Skin Enterprises, Inc. (NYSE:NUS) in the last 12 months may probably not pay attention to the stock's recent 6.8% drop. Even after accounting for the recent loss, the US$2.0m worth of stock purchased by them is now worth US$2.1m or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Nu Skin Enterprises

The Last 12 Months Of Insider Transactions At Nu Skin Enterprises

Over the last year, we can see that the biggest insider purchase was by Executive Chairman of the Board Steven Lund for US$1.0m worth of shares, at about US$48.05 per share. So it's clear an insider wanted to buy, at around the current price, which is US$50.56. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Nu Skin Enterprises insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 40.87k shares for US$2.0m. But insiders sold 1.62k shares worth US$97k. In the last twelve months there was more buying than selling by Nu Skin Enterprises insiders. 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!

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insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Nu Skin Enterprises

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. We usually like to see fairly high levels of insider ownership. Insiders own 2.2% of Nu Skin Enterprises shares, worth about US$56m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Nu Skin Enterprises Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Nu Skin Enterprises insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Nu Skin Enterprises, you should check out this free report on analyst forecasts for the company.

But note: Nu Skin Enterprises may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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