Potential MarketWise, Inc. (NASDAQ:MKTW) shareholders may wish to note that the Independent Director, Mark Gerhard, recently bought US$195k worth of stock, paying US$7.63 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 142%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At MarketWise
In fact, the recent purchase by Mark Gerhard was the biggest purchase of MarketWise shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$7.65. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the MarketWise insiders decided to buy shares at close to current prices.
MarketWise insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
MarketWise is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of MarketWise
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that MarketWise insiders own 0.3% of the company, worth about US$7.5m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At MarketWise Tell Us?
The recent insider purchases are heartening. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that MarketWise insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in MarketWise.
Of course MarketWise 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.
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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