Yahoo Finance Favourable Signals For Forge Global Holdings: Numerous Insiders Acquired Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Forge Global Holdings, Inc.'s (NYSE:FRGE) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Forge Global Holdings
Forge Global Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Kelly Rodriques was the biggest sale of Forge Global Holdings shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$2.16. So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid US$119k for 73.30k shares. But insiders sold 50.00k shares worth US$116k. In the last twelve months there was more buying than selling by Forge Global Holdings insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Forge Global Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Forge Global Holdings Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Forge Global Holdings shares. In total, CEO & Director Kelly Rodriques sold US$116k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Forge Global Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Forge Global Holdings insiders own 13% of the company, worth about US$51m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Forge Global Holdings Insiders?
An insider hasn't bought Forge Global Holdings stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. While we like knowing 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. While conducting our analysis, we found that Forge Global Holdings has 3 warning signs and it would be unwise to ignore them.
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 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.
