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Whilst it may not be a huge deal, we thought it was good to see that Edward Bagley, who is a company insider, recently bought US$60k worth of stock, for US$1.89 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for ClearOne
The Last 12 Months Of Insider Transactions At ClearOne
In fact, the recent purchase by insider Edward Bagley was not their only acquisition of ClearOne shares this year. Earlier in the year, they paid US$2.49 per share in a US$2.0m purchase. That means that an insider was happy to buy shares at above the current price of US$2.00. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
ClearOne insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
ClearOne 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 of ClearOne
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that ClearOne insiders own 58% of the company, worth about US$22m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About ClearOne Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. 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 ClearOne insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ClearOne. To that end, you should learn about the 4 warning signs we've spotted with ClearOne (including 1 which is potentially serious).