Yahoo Finance Insiders in Crexendo, Inc. (NASDAQ:CXDO) are down 29% on their US$1.4m purchase despite recent gains
Some of the losses seen by insiders who purchased US$1.4m worth of Crexendo, Inc. (NASDAQ:CXDO) shares over the past year were recovered after the stock increased by 16% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$402k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Crexendo
Crexendo Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board & CEO Steven Mihaylo bought US$981k worth of shares at a price of US$2.76 per share. That means that even when the share price was higher than US$2.00 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 502.70k shares for US$1.4m. On the other hand they divested 165.21k shares, for US$343k. In the last twelve months there was more buying than selling by Crexendo insiders. 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!
Crexendo 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.
Crexendo Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Crexendo shares over the last three months. In that time, Independent Director Todd Goergen dumped US$343k worth of shares. Meanwhile insiders bought US$35k worth. The share price has moved a bit recently, but it's hard to argue that the selling is a positive.
Insider Ownership Of Crexendo
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. It's great to see that Crexendo insiders own 61% of the company, worth about US$31m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Crexendo Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Crexendo stock, than buying, in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 4 warning signs for Crexendo and we suggest you have a look.
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, 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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