Investors can often look at insider ownership as a possible indicator of the stock’s potential and health. Even though it is not always a clear sign to sell or buy, insider ownership is an important factor to consider when evaluating a stock. Camtek Ltd.’s (NASDAQ:$CAMT) current insider ownership has raised more than a few eyebrows.
Another important aspect to consider is institutional ownership. This includes ownership by brokerages, hedge funds, and other financial institutions. High ownership can indicate that larger investors have faith in the company, whereas low ownership may indicate the opposite. Camtek’s current institutional ownership sits at 4.90%. This is considerably dwarfed by their insider ownership, which is at 62.70%. Insider ownership, on the other hand, can indicate that the company is about to make a move in a positive direction.
However, insider trading can sometimes provide false signals. Since management teams are unaccountable and keep their jobs under any circumstances, these sorts of buys can be deceptive and can often lead to opposite results.
Despite this, many investors often look for a stock with high insider ownership because that means that insiders will act in their own self-interest and will strive to increase value in the long term. This, in turn, gives the investor greater returns on their money.
Recently, Camtek hit $5.19 at the close, a rise of 7.01%, with a healthy trade volume of 198,862 versus the average volume of 308.32. Their beta currently sits at 1.01, indicating that they are a measly 1% riskier than the industry average. Of the past 6 months, the company has surged 39.14%. Over the past year, they rose 77.13%. Finally, year to date, they surged 57.75%.
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