Yahoo Finance Vamsi Pudipeddi of Sonendo, Inc. (NYSE:SONX) Just Spent US$80k On Shares
Whilst it may not be a huge deal, we thought it was good to see that Vamsi Pudipeddi, who is a company insider, recently bought US$80k worth of stock, for US$1.60 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 44%.
See our latest analysis for Sonendo
The Last 12 Months Of Insider Transactions At Sonendo
In fact, the recent purchase by insider Vamsi Pudipeddi was not their only acquisition of Sonendo shares this year. Earlier in the year, they paid US$2.65 per share in a US$133k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.00). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 393.74k shares for US$997k. On the other hand they divested 76.91k shares, for US$148k. Overall, Sonendo insiders were net buyers during the last year. 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!
Sonendo is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Sonendo Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.0% of Sonendo shares, worth about US$5.1m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Sonendo Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Sonendo stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sonendo. When we did our research, we found 3 warning signs for Sonendo (2 are significant!) that we believe deserve your full attention.
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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