Insider Buyers At Gogo Sitting On US$591k Profit

Insiders who bought Gogo Inc. (NASDAQ:GOGO) stock lover the last 12 months are probably not as affected by last week’s 11% loss. Reason being, despite the recent loss, insiders original purchase value of US$1.95m is now worth US$2.54m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Gogo Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Charles Townsend for US$1.3m worth of shares, at about US$6.74 per share. We do like to see buying, but this purchase was made at well below the current price of US$9.57. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Gogo insiders were buying shares, but not selling. 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!

See our latest analysis for Gogo

Gogo is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Gogo Insiders Bought Stock Recently

It's good to see that Gogo insiders have made notable investments in the company's shares. CEO & Director Christopher Moore spent US$121k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Gogo insiders own about US$58m worth of shares. That equates to 4.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Gogo Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Gogo insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Gogo (1 is potentially serious!) and we strongly recommend you look at them before investing.

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.