Insider Spends US$176k Buying More Shares In Grocery Outlet Holding
Investors who take an interest in Grocery Outlet Holding Corp. (NASDAQ:GO) should definitely note that the Independent Director, Carey Jaros, recently paid US$11.70 per share to buy US$176k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 20%.
The Last 12 Months Of Insider Transactions At Grocery Outlet Holding
Over the last year, we can see that the biggest insider purchase was by President Jason Potter for US$1.7m worth of shares, at about US$5.90 per share. Even though the purchase was made at a significantly lower price than the recent price (US$12.11), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$8.3m for 1.34m shares. But insiders sold 125.31k shares worth US$910k. Overall, Grocery Outlet Holding insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Grocery Outlet Holding
Grocery Outlet Holding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Grocery Outlet Holding
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Grocery Outlet Holding insiders own about US$69m worth of shares. That equates to 5.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Grocery Outlet Holding Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Grocery Outlet Holding we think they are probably pretty confident of a bright future. While it's good to be aware of 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. In terms of investment risks, we've identified 1 warning sign with Grocery Outlet Holding and understanding it should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.