Investors who take an interest in Sierra Wireless, Inc. (TSE:SW) should definitely note that the Senior VP and GM of IoT Solutions & Marketing, James Ryan, recently paid CA$20.83 per share to buy CA$208k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At Sierra Wireless
The insider, Jason Krause, made the biggest insider sale in the last 12 months. That single transaction was for CA$479k worth of shares at a price of CA$19.80 each. That means that even when the share price was below the current price of CA$22.39, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. It is worth noting that this sale was 77% of Jason Krause's holding.
In the last twelve months insiders purchased 33.90k shares for CA$615k. But insiders sold 48.69k shares worth CA$900k. Over the last year we saw more insider selling of Sierra Wireless shares, than buying. The average sell price was around US$18.48. It's not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership of Sierra Wireless
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 our data, it seems that Sierra Wireless insiders own 0.9% of the company, worth about CA$7.2m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Sierra Wireless Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sierra Wireless. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Sierra Wireless.
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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Sierra Wireless, Inc., together with its subsidiaries, provides device-to-cloud Internet of Things (IoT) solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Adequate balance sheet with moderate growth potential.