Positive Signs As Multiple Insiders Buy Sopheon Stock \
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Sopheon plc's (LON:SPE) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Sopheon
Sopheon Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CFO, Finance Director, Arif Karimjee, sold UK£44k worth of shares at a price of UK£6.30 per share. That means that an insider was selling shares at around the current price of UK£6.20. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Notably Arif Karimjee was also the biggest buyer, having purchased UK£142k worth of shares.
Over the last year, we can see that insiders have bought 21.00k shares worth UK£142k. But insiders sold 8.00k shares worth UK£51k. Overall, Sopheon insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Sopheon 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.
Insiders At Sopheon Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Sopheon, over the last three months. Insiders spent UK£142k on shares. On the other hand, insiders netted UK£51k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Sopheon insiders own 22% of the company, worth about UK£15m. 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 Sopheon Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Sopheon shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Sopheon that deserve your attention before buying any shares.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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