Yahoo Finance Read This Before Selling Boku, Inc. (LON:BOKU) Shares
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Boku, Inc. (LON:BOKU).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Boku
Boku Insider Transactions Over The Last Year
The CFO & Executive Director Keith Butcher made the biggest insider purchase in the last 12 months. That single transaction was for UK£160k worth of shares at a price of UK£1.20 each. We do like to see buying, but this purchase was made at well below the current price of UK£1.81. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 146.72k shares worth UK£175k. But they sold 4.17k shares for UK£5.8k. In the last twelve months there was more buying than selling by Boku insiders. 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!
Boku 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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.9% of Boku shares, worth about UK£32m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Boku Tell Us?
It doesn't really mean much that no insider has traded Boku shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Boku and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Boku. You'd be interested to know, that we found 2 warning signs for Boku and we suggest you have a look.
Of course Boku 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.
This article by Simply Wall St is general in nature. 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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