Should You Take Comfort From Insider Transactions At Sonim Technologies, Inc. (NASDAQ:SONM)?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Sonim Technologies, Inc. (NASDAQ:SONM).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Sonim Technologies

Sonim Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Bryant Riley bought US$440k worth of shares at a price of US$0.75 per share. That means that an insider was happy to buy shares at around the current price of US$0.86. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Sonim Technologies insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 1.32m shares for US$986k. But insiders sold 7.83k shares worth US$6.7k. Overall, Sonim Technologies insiders were net buyers during the last year. 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!

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 Sonim Technologies

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$2.0m worth of Sonim Technologies stock, about 3.5% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About Sonim Technologies Insiders?

It doesn't really mean much that no insider has traded Sonim Technologies shares in the last quarter. 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 Sonim Technologies insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sonim Technologies. To that end, you should learn about the 4 warning signs we've spotted with Sonim Technologies (including 1 which shouldn't be ignored).

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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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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