Insider Buys Additional US$276k In Shenandoah Telecommunications Stock

Potential Shenandoah Telecommunications Company (NASDAQ:SHEN) shareholders may wish to note that the Chairman, Christopher French, recently bought US$276k worth of stock, paying US$14.91 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Shenandoah Telecommunications

The Last 12 Months Of Insider Transactions At Shenandoah Telecommunications

In fact, the recent purchase by Christopher French was the biggest purchase of Shenandoah Telecommunications shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$15.27 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Shenandoah Telecommunications share holders is that insiders were buying at near the current price.

Shenandoah Telecommunications insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Shenandoah Telecommunications is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Shenandoah Telecommunications insiders own about US$34m worth of shares. That equates to 4.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Shenandoah Telecommunications Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Shenandoah Telecommunications we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shenandoah Telecommunications. For example, Shenandoah Telecommunications has 2 warning signs (and 1 which is significant) we think you should know about.

Of course Shenandoah Telecommunications 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 of direct interests only, but not derivative transactions or indirect interests.

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