Yahoo Finance Positive Signs As Multiple Insiders Buy SenSen Networks Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in SenSen Networks Limited's (ASX:SNS) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for SenSen Networks
SenSen Networks Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder Subhash Challa bought AU$282k worth of shares at a price of AU$0.04 per share. That means that even when the share price was higher than AU$0.029 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
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. By clicking on the graph below, you can see the precise details of each insider transaction!
SenSen Networks is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
SenSen Networks Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at SenSen Networks. Overall, three insiders shelled out AU$408k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 28% of SenSen Networks shares, worth about AU$6.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The SenSen Networks Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of SenSen Networks we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SenSen Networks. Every company has risks, and we've spotted 5 warning signs for SenSen Networks (of which 1 is a bit unpleasant!) you should know about.
But note: SenSen Networks 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 currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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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.
