Summary
Natural Alternatives International Inc (NASDAQ: NAII) disclosed insider buying and a secured waiver on its credit agreement this week. The purchases, filed on Form 4 with the Securities and Exchange Commission, show CEO and Chairman Mark A. Ledoux acquired a total of 1,250 shares in three separate transactions. The company also announced it negotiated a Waiver and Release Agreement with Wells Fargo Bank after reporting covenant breaches for the fiscal first quarter ended September 30, 2025.
Insider transactions
The Form 4 filing details that Ledoux bought shares between February 25 and February 27, 2026. Transaction prices ranged from $2.80 to $2.846 per share, bringing the aggregate cash outlay to $3,528. At the time of reporting, the stock was trading at $2.71, close to its 52-week low of $2.33 and carrying a price-to-book ratio of 0.24.
According to an InvestingPro analysis cited in the disclosure, NAII appears undervalued based on its Fair Value assessment, with additional analytical metrics and expert commentary available on that platform.
Credit agreement waiver
The company also filed a public disclosure with the SEC stating it was not in compliance with specific financial covenants for the fiscal first quarter ended September 30, 2025. Natural Alternatives International reported breaches of the maximum net loss covenant and the fixed charge coverage ratio covenant required under its credit agreement. After notifying Wells Fargo of these breaches, the company requested and received a waiver for all defaults. The waiver permits the company to continue under its existing credit agreement despite the prior covenant violations.
Context and implications
The filings provide a concurrent view of insider activity and a financing matter that were made public through SEC disclosures. The insider purchase and the credit waiver are discrete events recorded in mandatory filings; the documents specify the transaction details and the terms of the waiver without offering additional commentary on future company strategy or operational adjustments.
All information in this report is drawn from the company’s SEC filings and the InvestingPro assessment referenced in those filings.