When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Synchronoss Technologies, Inc.'s (NASDAQ:SNCR) instance, it's good news for shareholders.
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.
Synchronoss Technologies Insider Transactions Over The Last Year
The Executive VP & Chief Financial Officer Taylor Greenwald made the biggest insider purchase in the last 12 months. That single transaction was for US$128k worth of shares at a price of US$1.32 each. Even though the purchase was made at a significantly lower price than the recent price (US$1.48), we still think insider buying is a positive. 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.
In the last twelve months insiders purchased 549.42k shares for US$710k. But they sold 42.00 shares for US$95.8. In the last twelve months there was more buying than selling by Synchronoss Technologies insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Synchronoss Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 9.7% of Synchronoss Technologies shares, worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Synchronoss Technologies Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Synchronoss Technologies shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Synchronoss Technologies and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Synchronoss Technologies and we suggest you have a look.
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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