Insider Spends US$2.4m Buying More Shares In Gogo

Gogo Inc. (NASDAQ:GOGO) shareholders (or potential shareholders) will be happy to see that the Independent Director, Charles Townsend, recently bought a whopping US$2.4m worth of stock, at a price of US$8.32. While that only increased their holding size by 8.2%, it is still a big swing by our standards.

See our latest analysis for Gogo

The Last 12 Months Of Insider Transactions At Gogo

In fact, the recent purchase by Charles Townsend was the biggest purchase of Gogo shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$8.90 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Gogo share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 301.65k shares worth US$2.5m. But they sold 79.80k shares for US$821k. Overall, Gogo insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Gogo 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Gogo insiders own 6.4% of the company, worth about US$71m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Gogo Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Gogo shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 3 warning signs for Gogo and we suggest you have a look.

Of course Gogo 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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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.