Mobilum Technologies Loses CA$1.2m Market Value But Insiders See Windfall Of US$328k

Mobilum Technologies Inc. (CSE:MBLM) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 25% decline in the stock price. After accounting for the recent loss, the US$656.8k worth of shares they purchased is now worth US$984.9k, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Mobilum Technologies

Mobilum Technologies Insider Transactions Over The Last Year

The Chairman of the Board Wojciech Kaszycki made the biggest insider purchase in the last 12 months. That single transaction was for CA$654k worth of shares at a price of CA$0.01 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.015), 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.

Wojciech Kaszycki bought 65.66m shares over the last 12 months at an average price of CA$0.01. 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mobilum Technologies insiders own 40% of the company, currently worth about CA$1.4m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Mobilum Technologies Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Mobilum Technologies insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the 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. To that end, you should learn about the 7 warning signs we've spotted with Mobilum Technologies (including 5 which are concerning).

But note: Mobilum Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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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.