Insider Buying: The Crexendo, Inc. (NASDAQ:CXDO) Chairman of the Board & CEO Just Bought 3.4% More Shares
Crexendo, Inc. (NASDAQ:CXDO) shareholders (or potential shareholders) will be happy to see that the Chairman of the Board & CEO, Steven Mihaylo, recently bought a whopping US$981k worth of stock, at a price of US$2.76. While that only increased their holding size by 3.4%, it is still a big swing by our standards.
See our latest analysis for Crexendo
The Last 12 Months Of Insider Transactions At Crexendo
In fact, the recent purchase by Steven Mihaylo was the biggest purchase of Crexendo shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$3.07. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Crexendo insiders bought shares during the last year, they didn't sell. Their average price was about US$3.44. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are 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. Crexendo insiders own about US$38m worth of shares (which is 55% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Crexendo Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Crexendo insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Crexendo (of which 1 makes us a bit uncomfortable!) you should know about.
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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