Shift Technologies, Inc. (NASDAQ:SFT) insider upped their holding by 29% earlier this year
Viewing insider transactions for Shift Technologies, Inc.'s (NASDAQ:SFT ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Shift Technologies
Shift Technologies Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Maruthi Venkata bought US$603k worth of shares at a price of US$1.63 per share. That means that an insider was happy to buy shares at above the current price of US$1.44. 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. 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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Maruthi Venkata was the only individual insider to buy shares in the last twelve months. Notably Maruthi Venkata was also the biggest seller.
Maruthi Venkata bought a total of 447.25k shares over the year at an average price of US$1.35. 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).
Shift Technologies Insiders Bought Stock Recently
At Shift Technologies,over the last quarter, we have observed quite a lot more insider buying than insider selling. insider Maruthi Venkata spent US$605k on stock. But we did see insider Maruthi Venkata sell shares worth US$303k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Does Shift Technologies Boast High Insider Ownership?
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 15% of Shift Technologies shares, worth about US$3.6m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Shift Technologies Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give 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 Shift Technologies insiders are reasonably well aligned, and optimistic for 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. Every company has risks, and we've spotted 6 warning signs for Shift Technologies (of which 3 are a bit concerning!) you should know about.
But note: Shift Technologies 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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