GrowGeneration Insiders Placed Bullish Bets Worth US$1.98m
Multiple insiders secured a larger position in GrowGeneration Corp. (NASDAQ:GRWG) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for GrowGeneration
GrowGeneration Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Darren Lampert bought US$994k worth of shares at a price of US$2.36 per share. That implies that an insider found the current price of US$2.54 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months GrowGeneration insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
GrowGeneration is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
GrowGeneration Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at GrowGeneration. Overall, two insiders shelled out US$2.0m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
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. From our data, it seems that GrowGeneration insiders own 6.4% of the company, worth about US$9.9m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At GrowGeneration Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that GrowGeneration insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of GrowGeneration.
Of course GrowGeneration may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
