Whilst it may not be a huge deal, we thought it was good to see that the Qumu Corporation (NASDAQ:QUMU) President, Vernon Hanzlik, recently bought US$50k worth of stock, for US$2.50 per share. That might not be a big purchase but it only increased their holding by 8.9%, and could be interpreted as a good sign.
Qumu Insider Transactions Over The Last Year
Notably, that recent purchase by Vernon Hanzlik is the biggest insider purchase of Qumu shares that we’ve seen in the last year. That means that an insider was happy to buy shares at around the current price of US$2.53. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. Happily, the Qumu insiders decided to buy shares at close to current prices.
Qumu insiders may have bought shares in the last year, but they didn’t sell any. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Qumu
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data suggests Qumu insiders own 4.8% of the company, worth about US$1.6m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Qumu Insiders?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Qumu stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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