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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Sangoma Technologies Corporation (TSE:STC), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Sangoma Technologies
Sangoma Technologies Insider Transactions Over The Last Year
The Independent Director Marc Lederman made the biggest insider purchase in the last 12 months. That single transaction was for CA$126k worth of shares at a price of CA$4.19 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$8.62. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 81.00k shares worth CA$498k. But they sold 13.70k shares for CA$87k. In total, Sangoma Technologies insiders bought more than they sold over the last year. The average buy price was around CA$6.15. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!
Sangoma Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Have Sangoma Technologies Insiders Traded Recently?
We have seen a bit of insider selling at Sangoma Technologies, over the last three months. Chief Technology Officer Nenad Corbic sold just CA$11k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Does Sangoma Technologies 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. It appears that Sangoma Technologies insiders own 23% of the company, worth about CA$66m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.