Yahoo Finance Independent Director of Grove Collaborative Holdings Picks Up 21% More Stock \
Potential Grove Collaborative Holdings, Inc. (NYSE:GROV) shareholders may wish to note that the Independent Director, John Replogle, recently bought US$100k worth of stock, paying US$0.48 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 21%.
See our latest analysis for Grove Collaborative Holdings
Grove Collaborative Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director John Replogle was not the only time they bought Grove Collaborative Holdings shares this year. They previously made an even bigger purchase of US$103k worth of shares at a price of US$0.83 per share. That means that an insider was happy to buy shares at above the current price of US$0.48. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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$427k for 875.31k shares. On the other hand they divested 225.15k shares, for US$86k. In total, Grove Collaborative Holdings insiders bought more than they sold over the last year. Their average price was about US$0.49. This is nice to see since it implies that insiders might see value around current prices. 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!
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).
Does Grove Collaborative Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Grove Collaborative Holdings insiders own about US$6.0m worth of shares (which is 7.0% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Do The Grove Collaborative Holdings Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Grove Collaborative Holdings insiders are reasonably well aligned, and optimistic for the future. 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. For example, Grove Collaborative Holdings has 5 warning signs (and 2 which are a bit unpleasant) we think you should know about.
Of course Grove Collaborative Holdings 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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