Yahoo Finance Bullish GrowGeneration Insiders Loaded Up On US$1.98m Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in GrowGeneration Corp. (NASDAQ:GRWG). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for GrowGeneration
The Last 12 Months Of Insider Transactions At GrowGeneration
Over the last year, we can see that the biggest insider purchase was by Co-Founder Darren Lampert for US$994k worth of shares, at about US$2.36 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.28). 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.
GrowGeneration insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
GrowGeneration is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does GrowGeneration Boast High Insider Ownership?
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. Insiders own 7.1% of GrowGeneration shares, worth about US$10m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At GrowGeneration Tell Us?
It doesn't really mean much that no insider has traded GrowGeneration shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think GrowGeneration insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 2 warning signs for GrowGeneration (1 makes us a bit uncomfortable!) that we believe deserve your full attention.
Of course GrowGeneration 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 of direct interests only, but not derivative transactions or indirect interests.
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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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