Advertisement
UK markets close in 8 hours 12 minutes
  • FTSE 100

    7,950.89
    +18.91 (+0.24%)
     
  • FTSE 250

    19,802.66
    -8.00 (-0.04%)
     
  • AIM

    742.11
    0.00 (0.00%)
     
  • GBP/EUR

    1.1683
    +0.0014 (+0.12%)
     
  • GBP/USD

    1.2609
    -0.0029 (-0.23%)
     
  • Bitcoin GBP

    55,840.79
    +369.84 (+0.67%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CRUDE OIL

    81.86
    +0.51 (+0.63%)
     
  • GOLD FUTURES

    2,212.00
    -0.70 (-0.03%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,558.25
    +165.41 (+1.01%)
     
  • DAX

    18,485.62
    +8.53 (+0.05%)
     
  • CAC 40

    8,216.60
    +11.79 (+0.14%)
     

SpringBig Holdings, Inc. (NASDAQ:SBIG) drops to US$26m and insiders who purchased earlier this year lose another US$36k

Insiders who bought US$98k worth of SpringBig Holdings, Inc.'s (NASDAQ:SBIG) stock at an average buy price of US$1.64 over the last year may be disappointed by the recent 22% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$62k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for SpringBig Holdings

SpringBig Holdings Insider Transactions Over The Last Year

The Co-Founder Jeffrey Harris made the biggest insider purchase in the last 12 months. That single transaction was for US$98k worth of shares at a price of US$1.67 each. That means that even when the share price was higher than US$1.04 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Jeffrey Harris.

ADVERTISEMENT

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!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. SpringBig Holdings insiders own about US$5.8m worth of shares. That equates to 22% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About SpringBig Holdings Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest SpringBig Holdings 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 SpringBig Holdings. Case in point: We've spotted 3 warning signs for SpringBig Holdings you should be aware of, and 2 of them are significant.

But note: SpringBig Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here