Insider Confidence in a Flat‑Lining Stock
On February 9, 2026, Kunkel Jay K., a senior executive at Varex Imaging Corp., completed a sizable purchase of 8,483 shares of the company’s common stock. The transaction occurred at a price of $14.15 per share, just a cent above the market close, and coincided with the conversion of a block of deferred stock units into common equity. The move is not isolated; it mirrors a wave of insider buying that swept the boardroom on the same day, with key figures such as Chertoff, Rosebrough, and Guertin each adding roughly 8,500 shares to their holdings.
What the Numbers Mean for Investors
The buying spree is notable against a backdrop of flat stock performance. Varex’s share price has been hovering around $14, with a modest weekly gain of 1.58 % and a 52‑week low of $6.76. The company’s negative earnings (P/E = –8.31) and modest market cap ($586 M) suggest that the market remains cautious. Yet the insiders’ willingness to purchase in such volume—and at a price almost unchanged from the last close—indicates confidence that the stock is undervalued relative to its intrinsic asset base and future product pipeline.
From a valuation perspective, Varex trades near its 52‑week high of $14.565, implying that the market has already priced in a significant amount of upside potential. Insider buying can serve as a contrarian signal, particularly when the broader market sentiment is neutral (social‑media sentiment score of 0) and there is no heightened buzz. It suggests that executives believe the company’s core technologies—x‑ray tubes, flat‑panel detectors, and imaging software—are poised for incremental revenue growth, even if earnings remain negative in the short term.
Implications for the Company’s Future
The timing of the conversion of deferred units and the simultaneous purchase of common shares underscores a commitment to aligning executive interests with shareholders. By turning deferred equity into liquid holdings, Kunkel and his peers are reinforcing their long‑term stake in Varex, signaling that they expect the company’s valuation to rise as the product roadmap unfolds. This alignment can be attractive to institutional investors who favor management that shares their horizon.
Moreover, the simultaneous buying spree by several high‑ranking executives—most notably the CEO, the CFO, and senior managers—may be interpreted as a collective endorsement of the company’s strategic direction. If these insiders are also participating in performance‑stock‑unit grants (as seen in December 2025), their fresh injections of capital into the equity base could help mitigate dilution risks for existing shareholders.
Bottom Line for Stakeholders
For investors, the current insider activity suggests a cautiously bullish view: executives are betting on a recovery in earnings and a subsequent appreciation in share price. The lack of dramatic price movement or social‑media hype indicates that the market has yet to fully digest the implications of the insider purchases. Over the next few quarters, watch for signs of revenue traction from Varex’s imaging component lines and any shift in the company’s profitability metrics. If the positive sentiment among insiders translates into tangible operational gains, the stock could begin to climb toward its 52‑week high—offering a modest upside for those who have faith in Varex’s technology moat.
| Date | Owner | Transaction Type | Shares | Price per Share | Security |
|---|---|---|---|---|---|
| 2026-02-09 | Kunkel Jay K. () | Buy | 8,483.00 | 0.00 | Common Stock |
| 2026-02-09 | Kunkel Jay K. () | Sell | 8,483.00 | N/A | Deferred Stock Units |
