Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Socket Mobile, Inc.( NASDAQ:SCKT ), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Socket Mobile Insider Transactions Over The Last Year
The Independent Director Ivan Lazarev made the biggest insider purchase in the last 12 months. That single transaction was for US$56k worth of shares at a price of US$1.20 each. That means that an insider was happy to buy shares at above the current price of US$0.90. 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. We always take careful note of the price insiders pay when purchasing 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.
Happily, we note that in the last year insiders paid US$196k for 168.17k shares. But they sold 3.00k shares for US$3.0k. Overall, Socket Mobile insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Socket Mobile
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Are Socket Mobile Insiders Buying Or Selling?
In the last three months company Independent Director Felix Marx divested US$3.0k worth of stock. That is not a lot. The net selling is so small that it's hard to draw any conclusions from these recent transactions.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Socket Mobile insiders own 36% of the company, worth about US$2.7m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Socket Mobile Insider Transactions Indicate?
Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Socket Mobile and their transactions don't cause us concern. While it's good to be aware of 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. For example - Socket Mobile has 3 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere.So take a peek at this free list of interesting companies.
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.
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