Insiders purchases in urban-gro, Inc. (NASDAQ:UGRO) last year yet to pay off, remain down US$677 despite recent gains
Insiders who purchased US$100k worth of urban-gro, Inc. (NASDAQ:UGRO) shares over the past year recouped some of their losses after price gained 10% last week. However, total losses seen by insiders are still US$677 since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for urban-gro
The Last 12 Months Of Insider Transactions At urban-gro
In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director Lewis Wilks bought US$92k worth of shares at a price of US$4.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.74). 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 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. Lewis Wilks was the only individual insider to buy shares in the last twelve months.
Lewis Wilks bought a total of 26.56k shares over the year at an average price of US$3.77. 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!
urban-gro 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 urban-gro
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. urban-gro insiders own about US$11m worth of shares. That equates to 27% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At urban-gro Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest urban-gro insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing urban-gro. Case in point: We've spotted 3 warning signs for urban-gro you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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