Yahoo Finance Bullish insiders bet US$917k on Sonendo, Inc. (NYSE:SONX)
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Sonendo, Inc.'s (NYSE:SONX) instance, it's good news for 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.
See our latest analysis for Sonendo
The Last 12 Months Of Insider Transactions At Sonendo
The insider Vamsi Pudipeddi made the biggest insider purchase in the last 12 months. That single transaction was for US$133k worth of shares at a price of US$2.65 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.55). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$917k for 343.74k shares. On the other hand they divested 55.99k shares, for US$112k. In total, Sonendo insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Sonendo 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.
Sonendo Insiders Bought Stock Recently
There was some insider buying at Sonendo over the last quarter. insider Vamsi Pudipeddi bought US$56k worth of shares in that time. On the other hand, they sold US$43k worth of shares. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Sonendo insiders own 4.8% of the company, worth about US$3.7m. I generally like to see higher levels of ownership.
So What Do The Sonendo Insider Transactions Indicate?
We note that there's been a little more insider selling than buying, recently. But the difference isn't enough to have us worried. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Sonendo insiders bought more shares in the company. 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. Be aware that Sonendo is showing 4 warning signs in our investment analysis, and 2 of those are significant...
Of course Sonendo 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, 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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