Bullish Red Robin Gourmet Burgers Insiders Loaded Up On US$1.04m Of Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Red Robin Gourmet Burgers, Inc.'s (NASDAQ:RRGB) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Red Robin Gourmet Burgers
Red Robin Gourmet Burgers Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO, Director & President Gerard Hart bought US$300k worth of shares at a price of US$11.99 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.39). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Red Robin Gourmet Burgers insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Red Robin Gourmet Burgers Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Red Robin Gourmet Burgers insiders own about US$8.9m worth of shares (which is 5.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Red Robin Gourmet Burgers Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Red Robin Gourmet Burgers insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Red Robin Gourmet Burgers. For example - Red Robin Gourmet Burgers has 1 warning sign we think you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
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.
