How Much Are Boingo Wireless, Inc. (NASDAQ:WIFI) Insiders Taking Off The Table?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Boingo Wireless, Inc. (NASDAQ:WIFI), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. 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.'
Check out our latest analysis for Boingo Wireless
The Last 12 Months Of Insider Transactions At Boingo Wireless
In fact, the recent sale by Chief Technology Officer Derek Peterson was not their only sale of Boingo Wireless shares this year. Earlier in the year, they fetched US$21.77 per share in a -US$253.1k sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$13.26). So it may not tell us anything about how insiders feel about the current share price.
In total, Boingo Wireless insiders sold more than they bought over the last year. 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.
Insiders at Boingo Wireless Have Sold Stock Recently
We have seen a bit of insider selling at Boingo Wireless, over the last three months. US$150k worth of shares were sold by Derek Peterson. But (as above)at least we saw US$110k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Insider Ownership of Boingo Wireless
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Boingo Wireless insiders own about US$24m worth of shares. That equates to 4.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Boingo Wireless Insiders?
Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. We're a little cautious about the insider selling at Boingo Wireless. The modest level of insider ownership is, at least, some comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Boingo Wireless.
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.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
