Insiders may be rethinking their US$727k Veritone, Inc. (NASDAQ:VERI) investment now that the company has lost US$44m in value
Insiders who acquired US$727k worth of Veritone, Inc.'s (NASDAQ:VERI) stock at an average price of US$7.77 in the past 12 months may be dismayed by the recent 14% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$669k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Veritone
Veritone Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Founder Ryan Steelberg for US$388k worth of shares, at about US$6.88 per share. That means that an insider was happy to buy shares at around the current price of US$7.15. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Veritone share holders is that insiders were buying at near the current price.
While Veritone insiders bought shares during the last year, they didn't sell. Their average price was about US$7.77. These transactions suggest that insiders have considered the current price attractive. 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!
Veritone is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Veritone Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Veritone insiders own 12% of the company, worth about US$32m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Veritone Insider Transactions Indicate?
The fact that there have been no Veritone insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Veritone and we see no evidence to suggest they are worried about the 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. While conducting our analysis, we found that Veritone has 3 warning signs and it would be unwise to ignore them.
Of course Veritone 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, 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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