We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Boingo Wireless, Inc. (NASDAQ:WIFI).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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The Last 12 Months Of Insider Transactions At Boingo Wireless
Over the last year, we can see that the biggest insider sale was by CFO & Secretary Peter Hovenier for US$1.4m worth of shares, at about US$28.09 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$22.18. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we note insiders sold 170.08k shares worth US$4.8m. All up, insiders sold more shares in Boingo Wireless than they bought, over the last year. The average sell price was around US$28.48. Insider selling doesn’t make us excited to buy. But the selling was at much higher prices than the current share price (US$22.18), so it probably doesn’t tell us a lot about the value on offer today. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Boingo Wireless better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Boingo Wireless
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. It appears that Boingo Wireless insiders own 2.2% of the company, worth about US$20m. 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 Boingo Wireless Insider Transactions Indicate?
The fact that there have been no Boingo Wireless insider transactions recently certainly doesn’t bother us. We don’t take much encouragement from the transactions by Boingo Wireless insiders. But it’s good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in Boingo Wireless, you should check out this free report on analyst forecasts for the company.
Of course Boingo Wireless may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.