Stock Analysis

Insider Buying: The Sierra Wireless, Inc. (TSE:SW) Chief Solutions Officer & Senior VP of EMEA and APAC Go to Market Just Bought US$92k Worth Of Shares

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TSX:SW
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Whilst it may not be a huge deal, we thought it was good to see that the Sierra Wireless, Inc. (TSE:SW) Chief Solutions Officer & Senior VP of EMEA and APAC Go to Market, Marc Overton, recently bought CA$92k worth of stock, for CA$23.63 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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Sierra Wireless Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Jason Krause, for CA$479k worth of shares, at about CA$19.80 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$21.40. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 77% of Jason Krause's holding.

Over the last year, we can see that insiders have bought 23.90k shares worth CA$406k. But insiders sold 40.88k shares worth CA$735k. All up, insiders sold more shares in Sierra Wireless than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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TSX:SW Insider Trading Volume February 28th 2021

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Does Sierra Wireless Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.9% of Sierra Wireless shares, worth about CA$6.8m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Sierra Wireless Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. Recent sales exacerbate our caution arising from analysis of Sierra Wireless insider transactions. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sierra Wireless. For example - Sierra Wireless has 2 warning signs we think you should be aware of.

Of course Sierra Wireless may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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