Stem, Inc. (NYSE:STEM) insider upped their holding by 9.1% earlier this year

Viewing insider transactions for Stem, Inc.'s (NYSE:STEM ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Stem

Stem Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Michael Morgan for US$1.1m worth of shares, at about US$7.62 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.81. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Stem is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Stem Insiders Bought Stock Recently

At Stem,over the last quarter, we have observed quite a lot more insider buying than insider selling. Independent Director Michael Morgan spent US$1.1m on stock. On the other hand, insiders netted US$901k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Stem insiders own 5.7% of the company, worth about US$78m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Stem Tell Us?

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. When combined with notable insider ownership, these factors suggest Stem insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stem. Every company has risks, and we've spotted 2 warning signs for Stem you should know about.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.