Read This Before Buying National Vision Holdings, Inc. (NASDAQ:EYE) Shares

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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell National Vision Holdings, Inc. (NASDAQ:EYE), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for National Vision Holdings

The Last 12 Months Of Insider Transactions At National Vision Holdings

Over the last year, we can see that the biggest insider sale was by the CEO, COO & Director, L. Fahs, for US$5.7m worth of shares, at about US$38.26 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$30.05. So it may not shed much light on insider confidence at current levels.

Over the last year, we note insiders sold 419k shares worth US$16m. Insiders in National Vision Holdings didn't buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of National Vision Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 1.9% of National Vision Holdings shares, worth about US$44m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The National Vision Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded National Vision Holdings shares in the last quarter. We don't take much encouragement from the transactions by National Vision Holdings insiders. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in National Vision Holdings, you should check out this free report on analyst forecasts for the company.

But note: National Vision Holdings 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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.