Had insiders known Quotient Technology Inc. (NYSE:QUOT) would hit US$362m they might have invested more last year
Insiders who bought Quotient Technology Inc. (NYSE:QUOT) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$42m as a result of the stock's 13% gain over the same period. As a result, the stock they originally bought for US$319k is now worth US$415k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Quotient Technology
Quotient Technology Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Andrew Gessow bought US$102k worth of shares at a price of US$4.08 per share. That means that an insider was happy to buy shares at above the current price of US$3.74. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$319k for 111.00k shares. But insiders sold 25.83k shares worth US$80k. In total, Quotient Technology insiders bought more than they sold over the last year. The average buy price was around US$2.87. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!
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.
Insiders At Quotient Technology Have Bought Stock Recently
There was some insider buying at Quotient Technology over the last quarter. In that period insiders spent US$108k on shares. But President Scott Raskin sold US$80k worth. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.
Insider Ownership Of Quotient Technology
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Quotient Technology insiders own about US$34m worth of shares. That equates to 9.4% 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 Quotient Technology Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Quotient Technology and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Quotient Technology you should know about.
But note: Quotient Technology may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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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.
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