Yahoo Finance Insiders who purchased this year lose US$7.5k as Spirent Communications plc (LON:SPT) stock drops to UK£1.78
The recent 16% drop in Spirent Communications plc's (LON:SPT) stock could come as a blow to insiders who purchased US$192k worth of stock at an average buy price of US$1.85 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$184k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Spirent Communications
The Last 12 Months Of Insider Transactions At Spirent Communications
Notably, that recent purchase by Jonathan Silver is the biggest insider purchase of Spirent Communications shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£1.78. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Spirent Communications 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Spirent Communications is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Spirent Communications Have Bought Stock Recently
Over the last quarter, Spirent Communications insiders have spent a meaningful amount on shares. Overall, four insiders shelled out UK£172k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Spirent Communications
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Spirent Communications insiders have about 0.3% of the stock, worth approximately UK£2.8m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Spirent Communications Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. 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 Spirent Communications stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spirent Communications. Every company has risks, and we've spotted 1 warning sign for Spirent Communications you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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