Even if it's not a huge purchase, we think it was good to see that Richard Lynch, the Independent Chairman of Ribbon Communications Inc. (NASDAQ:RBBN) recently shelled out US$90k to buy stock, at US$3.58 per share. That purchase might not be huge but it did increase their holding by 17%.
Ribbon Communications Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Franklin Hobbs for US$484k worth of shares, at about US$4.86 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.14). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Ribbon Communications insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by 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!
Ribbon Communications 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.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Ribbon Communications insiders own 2.3% of the company, worth about US$8.6m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Ribbon Communications Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Ribbon Communications insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Ribbon Communications, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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