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Even if it's not a huge purchase, we think it was good to see that David Morgan, the Independent Director of i3 Verticals, Inc. (NASDAQ:IIIV) recently shelled out US$95k to buy stock, at US$31.67 per share. Even though that isn't a massive buy, it did increase their holding by 75%, which is arguably a good sign.
The Last 12 Months Of Insider Transactions At i3 Verticals
In fact, the recent purchase by David Morgan was the biggest purchase of i3 Verticals shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$32.23 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for i3 Verticals share holders is that an insider was buying at near the current price. David Morgan was the only individual insider to buy during the last year.
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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. Our data suggests i3 Verticals insiders own 0.4% of the company, worth about US$3.8m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About i3 Verticals Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that i3 Verticals insiders are reasonably well aligned, and optimistic for the future. While we like knowing 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. For example - i3 Verticals has 1 warning sign we think you should be aware of.
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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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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