Several Insiders Invested In POET Technologies Flagging Positive News

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of POET Technologies Inc. (CVE:PTK), that sends out a positive message to the company's shareholders.

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.

See our latest analysis for POET Technologies

The Last 12 Months Of Insider Transactions At POET Technologies

Over the last year, we can see that the biggest insider purchase was by Executive VP Thomas Mika for CA$136k worth of shares, at about CA$1.22 per share. We do like to see buying, but this purchase was made at well below the current price of CA$4.24. 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.

While POET Technologies insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of POET Technologies

Many investors like to check how much of a company is owned by insiders. 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 CA$2.4m worth of POET Technologies stock, about 0.5% of the company. I generally like to see higher levels of ownership.

So What Does This Data Suggest About POET Technologies Insiders?

It doesn't really mean much that no insider has traded POET Technologies shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think POET Technologies insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing POET Technologies. When we did our research, we found 4 warning signs for POET Technologies (3 shouldn't be ignored!) that we believe deserve your full attention.

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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com