Quite a few insiders invested in Ribbon Communications Inc. (NASDAQ:RBBN) last year which is positive news for shareholders
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Ribbon Communications Inc. (NASDAQ:RBBN), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Ribbon Communications
The Last 12 Months Of Insider Transactions At Ribbon Communications
The Lead Independent Director Bruns Grayson made the biggest insider purchase in the last 12 months. That single transaction was for US$281k worth of shares at a price of US$2.81 each. We do like to see buying, but this purchase was made at well below the current price of US$3.41. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 118.00k shares for US$332k. But insiders sold 40.00k shares worth US$139k. In the last twelve months there was more buying than selling by Ribbon Communications insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ribbon Communications insiders own about US$10m worth of shares. That equates to 1.8% 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.
What Might The Insider Transactions At Ribbon Communications Tell Us?
It doesn't really mean much that no insider has traded Ribbon Communications shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Ribbon Communications insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ribbon Communications. Every company has risks, and we've spotted 2 warning signs for Ribbon Communications 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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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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