Insider Stock Buying Reaches US$1.35m On Shenandoah Telecommunications

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Shenandoah Telecommunications Company's (NASDAQ:SHEN) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Shenandoah Telecommunications

Shenandoah Telecommunications Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Christopher French for US$276k worth of shares, at about US$14.96 per share. That means that an insider was happy to buy shares at above the current price of US$11.63. 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 always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Shenandoah Telecommunications insiders bought shares during the last year, they didn't sell. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Shenandoah Telecommunications Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Shenandoah Telecommunications. Insiders purchased US$20k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Does Shenandoah Telecommunications Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 4.3% of Shenandoah Telecommunications shares, worth about US$27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Shenandoah Telecommunications Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Shenandoah Telecommunications insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shenandoah Telecommunications. Be aware that Shenandoah Telecommunications is showing 2 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

But note: Shenandoah Telecommunications 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.