Quite a few insiders have dramatically grown their holdings in SenSen Networks Limited (ASX:SNS) over the past 12 months. An insider’s optimism about the company’s prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for SenSen Networks
The Last 12 Months Of Insider Transactions At SenSen Networks
The insider Lev Mizikovsky made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.2m worth of shares at a price of AU$0.064 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.05). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take a careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they are paid above the current price, as it suggests they saw value, even at higher levels.
SenSen Networks insiders may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does SenSen Networks Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. SenSen Networks insiders own about AU$11m worth of shares. That equates to 32% of the company. 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 SenSen Networks 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 SenSen Networks insiders are doubting the company, and they do their own shares. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we’ve found that SenSen Networks has 4 warning signs (1 shouldn’t be ignored!) that deserves your attention before going any further with your analysis.
If you would prefer to check out another company — one with potentially superior financials — then don’t miss this free list of interesting companies, that have HIGH returns on equity 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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