Potential Quotient Technology Inc. (NYSE:QUOT) shareholders may wish to note that the Independent Director, Andrew Gessow, recently bought US$102k worth of stock, paying US$4.08 for each share. Although the purchase only increased their holding by 6.8%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Quotient Technology
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Robert McDonald for US$150k worth of shares, at about US$7.38 per share. That means that even when the share price was higher than US$4.44 (the recent price), an insider wanted to purchase shares. 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.
Happily, we note that in the last year insiders paid US$383k for 62.34k shares. But insiders sold 2.22k shares worth US$24k. In total, Quotient Technology insiders bought more than they sold over the last year. Their average price was about US$6.14. 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!
Quotient Technology is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Quotient Technology
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.6% of Quotient Technology shares, worth about US$24m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Quotient Technology Insiders?
It's certainly positive 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. When combined with notable insider ownership, these factors suggest Quotient Technology insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Quotient Technology you should know about.
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.