Insiders Rewarded With US$3.1m Addition To Investment As RumbleON Stock Hits US$221m
RumbleON, Inc. (NASDAQ:RMBL) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 35% resulting in a US$165m addition to the company’s market value. In other words, the original US$9.47m purchase is now worth US$12.6m.
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.
Check out our latest analysis for RumbleON
RumbleON Insider Transactions Over The Last Year
In fact, the recent purchase by William Coulter was the biggest purchase of RumbleON shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$7.32. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months RumbleON insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
RumbleON is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
RumbleON Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at RumbleON. Overall, two insiders shelled out US$9.5m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of RumbleON
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 33% of RumbleON shares, worth about US$74m. 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 RumbleON Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest RumbleON insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RumbleON. For instance, we've identified 2 warning signs for RumbleON (1 doesn't sit too well with us) you should be aware of.
But note: RumbleON 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 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.
