Market News

Despite Weakness in SONM Stock, These Insiders Look Confident

Story Highlights

At a time when new products of Sonim Technologies are about to hit the market, two insiders were seen loading up on its stock.

Shares of Sonim Technologies (SONM) have nosedived 83.4% over the past 12 months, and the short interest in the stock currently stands at 12%. To compound investor pain further, revenue has declined from a peak of $135.7 million in 2018 to $54.6 million in 2021. Nonetheless, shares of this rugged phones and accessories provider jumped 15.3% on Friday after two of the company’s insiders lapped up its shares last week.

As per an SEC filing, Jeffrey Wang, who owns more than 10% stake in the company, bought SONM shares worth $11.7 million on July 13. The magnitude of Wang’s transaction is a sizable chunk of the company’s current $13.1 market capitalization.

Meanwhile, Peter Liu Hao, the CEO and Director of Sonim Technologies, bought SONM shares worth $800,000.

According to TipRanks, which also provides a comprehensive list of daily insider transactions, various corporate insiders have bought and sold SONM stock in the last 30 days.

Interestingly, TipRanks also provides a list of hot stocks that command either a Very Positive or Positive insider confidence signal.

Recent Positives

While SONM shares have dropped massively in the past year, the company is seeing green shoots of growth. Last month, shares rallied after SONM bagged purchase orders worth $6.4 million for its XP5Plus phone.

These orders were on top of the previous tranche of $9.5 million in orders the company had bagged. Additionally, its XP10 phone is expected to hit the market this fall, a key event to keep an eye on.

Closing Note

SONM shares have lost substantial value recently. Nonetheless, the trifecta of new orders, new products about to hit the market, and positive actions of corporate insiders should help buoy investor sentiment toward the stock.

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