Sonim Technologies Insider Purchases Yet To Pay Off Regardless Of Recent Strength

Insiders who bought US$59.2k worth of Sonim Technologies, Inc. (NASDAQ:SONM) stock in the last year recovered part of their losses as the stock rose by 14% last week. However, total losses seen by insiders are still US$12k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Sonim Technologies

Sonim Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chief Financial Officer Clayton Crolius for US$59k worth of shares, at about US$0.68 per share. That means that even when the share price was higher than US$0.55 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Clayton Crolius.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Sonim Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Sonim Technologies

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. From our data, it seems that Sonim Technologies insiders own 7.4% of the company, worth about US$1.7m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

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. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Sonim Technologies stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Sonim Technologies you should be aware of.

But note: Sonim Technologies 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.