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Even if it's not a huge purchase, we think it was good to see that Dean Nolden, the Chief Financial Officer of REV Group, Inc. (NYSE:REVG) recently shelled out US$86k to buy stock, at US$5.72 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 46%.
REV Group Insider Transactions Over The Last Year
insider Timothy Sullivan made the biggest insider purchase in the last 12 months. That single transaction was for US$479k worth of shares at a price of US$9.58 each. That means that an insider was happy to buy shares at above the current price of US$4.35. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
Happily, we note that in the last year insiders paid US$664k for 74.16k shares. But insiders sold 5000 shares worth US$53k. In total, REV Group insiders bought more than they sold over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
REV Group 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that REV Group insiders own about US$9.8m worth of shares (which is 3.6% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The REV Group Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if REV Group insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for REV Group (1 is concerning!) that we believe deserve your full attention.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
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