Insiders made the right call by buying US$572k Gogo Inc. (NASDAQ:GOGO) stock this year, currently sit on US$61k profit

Simply Wall St
January 19, 2022
Source: Shutterstock

Insiders who bought Gogo Inc. (NASDAQ:GOGO) stock lover the last 12 months are probably not as affected by last week’s 6.8% loss. Even after accounting for the recent loss, the US$572k worth of stock purchased by them is now worth US$633k or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Gogo

Gogo Insider Transactions Over The Last Year

The Independent Director Robert Crandall made the biggest insider purchase in the last 12 months. That single transaction was for US$572k worth of shares at a price of US$11.44 each. That means that an insider was happy to buy shares at around the current price of US$12.66. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Gogo share holders is that an insider was buying at near the current price. Robert Crandall was the only individual insider to buy during 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!

NasdaqGS:GOGO Insider Trading Volume January 19th 2022

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 Gogo

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. We usually like to see fairly high levels of insider ownership. Gogo insiders own about US$62m 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 doesn't really mean much that no insider has traded Gogo shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Gogo insiders are doubting the company, and they do own shares. While we like knowing 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. Be aware that Gogo is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

Of course Gogo may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.