We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in ServiceSource International, Inc. (NASDAQ:SREV).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for ServiceSource International

The Last 12 Months Of Insider Transactions At ServiceSource International

The Executive Chairman & CEO Gary Moore made the biggest insider purchase in the last 12 months. That single transaction was for US$102k worth of shares at a price of US$1.31 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.68. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$285k for 189.62k shares. But insiders sold 49.56k shares worth US$70k. Overall, ServiceSource International insiders were net buyers during the last year. The average buy price was around US$1.50. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ServiceSource International 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.

Insiders at ServiceSource International Have Sold Stock Recently

We have seen a bit of insider selling at ServiceSource International, over the last three months. Executive VP of Global Client Delivery Michael Naughton divested only US$33k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.