Ideal Power Insider Buyers Net US$57k Despite 11% Stock Decline

Insiders who bought Ideal Power Inc. (NASDAQ:IPWR) stock lover the last 12 months are probably not as affected by last week’s 11% loss. After taking the recent loss into consideration, the US$289.9k worth of stock they bought is now worth US$347.1k, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Ideal Power

Over the last year, we can see that the biggest insider purchase was by CEO, President & Director David Somo for US$250k worth of shares, at about US$2.75 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.61. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Ideal Power insiders bought shares during the last year, they didn't sell. 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!

See our latest analysis for Ideal Power

Ideal Power 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 Of Ideal Power

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 6.2% of Ideal Power shares, worth about US$3.8m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Ideal Power Tell Us?

The fact that there have been no Ideal Power insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Ideal Power insiders are doubting the company. 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 Ideal Power is showing 5 warning signs in our investment analysis, and 3 of those don't sit too well with us...

Of course Ideal Power 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.