Have Insiders Sold Smith Micro Software, Inc. (NASDAQ:SMSI) Shares Recently?

By
Simply Wall St
Published
May 20, 2021
NasdaqCM:SMSI
Source: Shutterstock

Investors may wish to note that the Independent Director of Smith Micro Software, Inc., Thomas Campbell, recently netted US$77k from selling stock, receiving an average price of US$5.12. It might not be a huge sale, but it did reduce their holding size 21%, hardly encouraging.

Check out our latest analysis for Smith Micro Software

Smith Micro Software Insider Transactions Over The Last Year

The VP, CFO, Timothy Huffmyer, made the biggest insider sale in the last 12 months. That single transaction was for US$104k worth of shares at a price of US$5.19 each. That means that an insider was selling shares at around the current price of US$5.17. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Smith Micro Software insiders didn't buy any company stock. 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!

insider-trading-volume
NasdaqCM:SMSI Insider Trading Volume May 21st 2021

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).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 13% of Smith Micro Software shares, worth about US$35m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Smith Micro Software Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Smith Micro Software. Every company has risks, and we've spotted 3 warning signs for Smith Micro Software you should know about.

But note: Smith Micro Software 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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