Workhorse Group Insiders Are Down US$121k But Regain Some Losses
Insiders who bought US$288k worth of Workhorse Group Inc. (NASDAQ:WKHS) stock in the last year recovered part of their losses as the stock rose by 20% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$121k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Workhorse Group
Workhorse Group Insider Transactions Over The Last Year
The Independent Director Jacqueline Dedo made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$1.92 each. That means that an insider was happy to buy shares at above the current price of US$1.10. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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$288k for 152.02k shares. But insiders sold 67.69k shares worth US$141k. In total, Workhorse Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership Of Workhorse Group
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.8% of Workhorse Group shares, worth about US$8.9m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Workhorse Group Insiders?
It doesn't really mean much that no insider has traded Workhorse Group shares in the last quarter. 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 Workhorse Group insiders bought more shares in the company. 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. For instance, we've identified 4 warning signs for Workhorse Group (1 makes us a bit uncomfortable) you should be aware of.
Of course Workhorse Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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