Whilst it may not be a huge deal, we thought it was good to see that the Ribbon Communications Inc. (NASDAQ:RBBN) President, Bruce McClelland, recently bought US$88k worth of stock, for US$4.42 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 23%.
The Last 12 Months Of Insider Transactions At Ribbon Communications
Notably, that recent purchase by President Bruce McClelland was not the only time they bought Ribbon Communications shares this year. Earlier in the year, they paid US$3.06 per share in a US$107k purchase. Even though the purchase was made at a significantly lower price than the recent price (US$4.78), we still think insider buying is a positive. 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 Ribbon Communications insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Ribbon Communications
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Ribbon Communications insiders own 2.0% of the company, worth about US$14m. 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 Ribbon Communications Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Ribbon Communications shares, given these transactions (along with notable insider ownership of the company). 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 3 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.
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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