Inseego Insiders Recover Some Losses, Which Stand At US$51k

Some of the losses seen by insiders who purchased US$221.8k worth of Inseego Corp. (NASDAQ:INSG) shares over the past year were recovered after the stock increased by 14% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$51k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Inseego Insider Transactions Over The Last Year

The insider Philip Brace made the biggest insider purchase in the last 12 months. That single transaction was for US$124k worth of shares at a price of US$12.40 each. That means that even when the share price was higher than US$8.55 (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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Inseego insiders bought shares during the last year, they didn't sell. The average buy price was around US$11.09. I'd consider this a positive as it suggests insiders see value at around the current price. 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 Inseego

Inseego 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Inseego insiders own about US$21m worth of shares. That equates to 16% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Inseego Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Inseego and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Inseego is showing 3 warning signs in our investment analysis, and 1 of those is significant...

But note: Inseego 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.