Those following along with Sierra Wireless, Inc. (TSE:SW) will no doubt be intrigued by the recent purchase of shares by Gregory Waters, Independent Director of the company, who spent a stonking CA$1.0m on stock at an average price of CA$23.12. That increased their holding by a full 317%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
See our latest analysis for Sierra Wireless
Sierra Wireless Insider Transactions Over The Last Year
In fact, the recent purchase by Gregory Waters was the biggest purchase of Sierra Wireless shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than CA$22.62 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 85.35k shares worth CA$1.9m. But insiders sold 51.53k shares worth CA$1.0m. In the last twelve months there was more buying than selling by Sierra Wireless insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Sierra Wireless is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Sierra Wireless
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. Our data indicates that Sierra Wireless insiders own about CA$7.7m worth of shares (which is 0.9% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Sierra Wireless Tell Us?
It's certainly positive to see the recent insider purchases. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Sierra Wireless stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sierra Wireless. Case in point: We've spotted 3 warning signs for Sierra Wireless you should be aware of.