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Mobile Streams Plc (LON:MOS) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 32%, resulting in a UK£2.6m rise in the company's market capitalisation. As a result, the stock they originally bought for UK£118k is now worth UK£203k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Mobile Streams Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Director Mark Epstein for UK£59k worth of shares, at about UK£0.0026 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.0045. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid UK£118k for 45.19m shares. But they sold 45.19m shares for UK£118k. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Mobile Streams
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. It appears that Mobile Streams insiders own 19% of the company, worth about UK£2.0m. 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 Does This Data Suggest About Mobile Streams Insiders?
The fact that there have been no Mobile Streams insider transactions recently certainly doesn't bother us. Our analysis of Mobile Streams insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (3 don't sit too well with us!) that you ought to be aware of before buying any shares in Mobile Streams.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return 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.
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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