Insiders who bought AU$81.1k worth of SenSen Networks Limited (ASX:SNS) stock in the last year have seen some of their losses recouped as the stock gained 15% last week. However, total losses seen by insiders are still AU$38k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
SenSen Networks Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Scott Martin for AU$81k worth of shares, at about AU$0.056 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.03). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Scott Martin was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for SenSen Networks
SenSen Networks is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. SenSen Networks insiders own about AU$6.7m worth of shares. That equates to 27% of the company. 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?
The fact that there have been no SenSen Networks insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in SenSen Networks 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. In terms of investment risks, we've identified 1 warning sign with SenSen Networks and understanding it should be part of your investment process.
Of course SenSen Networks may not be the best stock to buy. So you may wish to see this free collection of high quality 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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