Trade Alert: The Interim Executive Chairman Of Sangoma Technologies Corporation (TSE:STC), Norman Worthington, Has Just Spent US$167k Buying 1.4% More Shares
Investors who take an interest in Sangoma Technologies Corporation (TSE:STC) should definitely note that the Interim Executive Chairman, Norman Worthington, recently paid CA$5.15 per share to buy CA$167k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.4%.
See our latest analysis for Sangoma Technologies
Sangoma Technologies Insider Transactions Over The Last Year
Notably, that recent purchase by Interim Executive Chairman Norman Worthington was not the only time they traded Sangoma Technologies shares this year. Earlier in the year, they sold shares at a price ofCA$6.25 per share in a -CA$5.0m transaction. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$4.84). So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$567k for 100.46k shares. On the other hand they divested 891.30k shares, for CA$5.6m. Norman Worthington sold a total of 891.30k shares over the year at an average price of US$6.25. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. We usually like to see fairly high levels of insider ownership. It appears that Sangoma Technologies insiders own 16% of the company, worth about CA$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Sangoma Technologies Insiders?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The more recent transactions are a positive, but Sangoma Technologies insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. Overall they seem reasonably aligned. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 4 warning signs for Sangoma Technologies that deserve your attention before buying any shares.
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.
Valuation is complex, but we're helping make it simple.
Find out whether Sangoma Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide.
Undervalued with mediocre balance sheet.