PodcastOne Insiders Are Down US$53k But Regain Some Losses
Insiders who bought US$386.1k worth of PodcastOne, Inc. (NASDAQ:PODC) stock in the last year recovered part of their losses as the stock rose by 23% last week. However, total losses seen by insiders are still US$53k 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.
The Last 12 Months Of Insider Transactions At PodcastOne
In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director Jonathan Merriman bought US$86k worth of shares at a price of US$3.20 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.18). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
PodcastOne insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$2.52. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for PodcastOne
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
PodcastOne Insiders Bought Stock Recently
It's good to see that PodcastOne insiders have made notable investments in the company's shares. Lead Independent Director Jonathan Merriman spent US$212k on stock, and there wasn't any selling. This makes one think the business has some good points.
Insider Ownership Of PodcastOne
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that PodcastOne insiders own about US$4.1m worth of shares (which is 6.2% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The PodcastOne Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that PodcastOne insiders are expecting a bright future. 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. To help with this, we've discovered 3 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in PodcastOne.
Of course PodcastOne 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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