Yahoo Finance Synchronoss Technologies Gains 18%, Insider Trades Reap Benefit
Synchronoss Technologies, Inc. (NASDAQ:SNCR) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 18%, resulting in a US$14m rise in the company's market capitalisation, translating to a gain of 111% on their initial investment. As a result, their original purchase of US$362.7k worth of stock is now worth US$763.9k.
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.
See our latest analysis for Synchronoss Technologies
The Last 12 Months Of Insider Transactions At Synchronoss Technologies
The Independent Director Kevin Rendino made the biggest insider purchase in the last 12 months. That single transaction was for US$130k worth of shares at a price of US$4.54 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$9.40. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Synchronoss Technologies insiders were buying shares, but not selling. 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!
Synchronoss Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Synchronoss Technologies insiders own about US$9.8m worth of shares (which is 10% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Synchronoss Technologies Insiders?
It doesn't really mean much that no insider has traded Synchronoss Technologies shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Synchronoss Technologies stock. 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. For example - Synchronoss Technologies has 4 warning signs we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not 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 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.
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