Insider Spends US$204k Buying More Shares In SoundThinking

Potential SoundThinking, Inc. (NASDAQ:SSTI) shareholders may wish to note that the Independent Director, Burton Goldfield, recently bought US$204k worth of stock, paying US$15.10 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 270%, potentially signalling some real optimism.

Our free stock report includes 2 warning signs investors should be aware of before investing in SoundThinking. Read for free now.

The Last 12 Months Of Insider Transactions At SoundThinking

In the last twelve months, the biggest single sale by an insider was when the President, Ralph Clark, sold US$436k worth of shares at a price of US$15.50 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$15.51. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 6.6% of Ralph Clark's stake.

In total, SoundThinking insiders sold more 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. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for SoundThinking

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Insider Ownership Of SoundThinking

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that SoundThinking insiders own 6.3% of the company, worth about US$12m. 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 Do The SoundThinking Insider Transactions Indicate?

Unfortunately, there has been more insider selling of SoundThinking stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with SoundThinking and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.