Yahoo Finance Sierra Wireless, Inc. (TSE:SW) Insiders Increased Their Holdings
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Sierra Wireless, Inc. (TSE:SW).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Sierra Wireless
Sierra Wireless Insider Transactions Over The Last Year
The Chief Operating Officer, Jason Krause, made the biggest insider sale in the last 12 months. That single transaction was for CA$251k worth of shares at a price of CA$25.32 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$15.64. So it may not shed much light on insider confidence at current levels.
Over the last year, we can see that insiders have bought 23350 shares worth CA$401k. But they sold 39316 for CA$622k. All up, insiders sold more shares in Sierra Wireless than they bought, over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Sierra Wireless Insiders Are Selling The Stock
We have seen a bit of insider selling at Sierra Wireless, over the last three months. The selling netted US$89k for insiders. But Independent Director Russell Jones spent US$68k on buying, too. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into 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. From looking at our data, insiders own CA$5.4m worth of Sierra Wireless stock, about 1.0% of the company. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Sierra Wireless Insiders?
Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. We're a little cautious about the insider selling at Sierra Wireless. And usually insiders own more stock in the company, according to our data. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Sierra Wireless 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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
