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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Mobile Streams Plc's (LON:MOS) case, it's fantastic news for shareholders.
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.
See our latest analysis for Mobile Streams
The Last 12 Months Of Insider Transactions At Mobile Streams
In the last twelve months, the biggest single purchase by an insider was when Interim Independent Non-Executive Chairman of the Board John Robert Barker bought UK£47k worth of shares at a price of UK£0.0038 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.0049), we still think insider buying is a positive. 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.
Mobile Streams insiders may have bought shares in the last year, but they didn't sell any. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Mobile Streams Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Mobile Streams. Overall, three insiders shelled out UK£102k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Mobile Streams
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 15% of Mobile Streams shares, worth about UK£6.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Mobile Streams Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Mobile Streams insiders are well aligned, and that they may think the share price is too low. 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. Every company has risks, and we've spotted 5 warning signs for Mobile Streams (of which 4 don't sit too well with us!) you should know about.