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Whilst it may not be a huge deal, we thought it was good to see that the ServiceSource International, Inc. (NASDAQ:SREV) Executive Chairman & CEO, Gary Moore, recently bought US$97k worth of stock, for US$1.58 per share. However, it only increased their shares held by 9.2%, and it wasn't a huge purchase by absolute value, either.
ServiceSource International Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Chairman & CEO Gary Moore was not the only time they bought ServiceSource International shares this year. They previously made an even bigger purchase of US$102k worth of shares at a price of US$1.31 per share. That means that an insider was happy to buy shares at around the current price of US$1.62. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for ServiceSource International share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 189.62k shares for US$285k. But they sold 6.67k shares for US$10.0k. Overall, ServiceSource International insiders were net buyers during the last year. They paid about US$1.50 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insider Ownership of ServiceSource International
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. From looking at our data, insiders own US$4.1m worth of ServiceSource International stock, about 2.6% of the company. We consider this fairly low insider ownership.
What Might The Insider Transactions At ServiceSource International Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that ServiceSource International insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with ServiceSource International and understanding it should be part of your investment process.
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.
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. 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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