Insiders Give Up US$47k As Seeing Machines Stock Drops To UK£0.026

Insiders who acquired US$230.7k worth of Seeing Machines Limited's (LON:SEE) stock at an average price of US$0.033 in the past 12 months may be dismayed by the recent 10.0% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$183.3k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Seeing Machines

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Stephane Vedie bought UK£47k worth of shares at a price of UK£0.04 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.026). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Seeing Machines insiders were buying shares, but not selling. Their average price was about UK£0.033. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Seeing Machines

Seeing Machines is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Seeing Machines Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Seeing Machines insiders own 0.6% of the company, worth about UK£803k. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Seeing Machines Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Seeing Machines insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Seeing Machines has 2 warning signs and it would be unwise to ignore them.

But note: Seeing Machines 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.