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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Weave Communications, Inc.'s (NYSE:WEAV) instance, it's good news for shareholders.
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.
Weave Communications Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Blake Modersitzki bought US$239k worth of shares at a price of US$6.47 per share. That means that an insider was happy to buy shares at above the current price of US$5.49. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Weave Communications insiders bought shares during the last year, they didn't sell. They paid about US$8.19 on average. 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Weave Communications Have Bought Stock Recently
Over the last quarter, Weave Communications insiders have spent a meaningful amount on shares. Independent Director Blake Modersitzki spent US$239k on stock, and there wasn't any selling. This makes one think the business has some good points.
Insider Ownership of Weave Communications
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 looking at our data, insiders own US$1.9m worth of Weave Communications stock, about 0.5% of the company. I generally like to see higher levels of ownership.
So What Do The Weave Communications Insider Transactions Indicate?
It is good to see the recent insider purchase. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Weave Communications stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Weave Communications. At Simply Wall St, we found 2 warning signs for Weave Communications that deserve your attention before buying any shares.
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.
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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.