Insiders who bought UK£136k worth of Mobile Streams Plc (LON:MOS) stock in the last year recovered part of their losses as the stock rose by 13% last week. However, total losses seen by insiders are still UK£76k but in since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Our analysis indicates that MOS is potentially overvalued!
Mobile Streams Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Mark Epstein, sold UK£136k worth of shares at a price of UK£0.003 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above the current price of UK£0.0013. So it may not shed much light on insider confidence at current levels. Mark Epstein was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 45.48m shares for UK£136k. On the other hand they divested 45.48m shares, for UK£136k. In the last twelve months there was more buying than selling by Mobile Streams insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Mobile Streams is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Mobile Streams Boast High 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 incentivized to build the company for the long term. Insiders own 21% of Mobile Streams shares, worth about UK£969k. 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 Do The Mobile Streams Insider Transactions Indicate?
The fact that there have been no Mobile Streams insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Mobile Streams and their transactions do not cause us concern. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example, Mobile Streams has 5 warning signs (and 3 which are a bit unpleasant) we think you should know about.
If you would prefer to check out another company — one with potentially superior financials — then don’t miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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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 into account 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.