Yahoo Finance Insiders who bought Compass, Inc. (NYSE:COMP) stock in the last 12 months recover some losses, but still down US$66k
Insiders who purchased US$162k worth of Compass, Inc. (NYSE:COMP) shares over the past year recouped some of their losses after price gained 10.0% last week. However, total losses seen by insiders are still US$66k since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Compass
Compass Insider Transactions Over The Last Year
The Independent Director Frank Martell made the biggest insider purchase in the last 12 months. That single transaction was for US$162k worth of shares at a price of US$5.39 each. That means that even when the share price was higher than US$3.20 (the recent price), an insider wanted to purchase shares. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Frank Martell was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Compass 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 Compass
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Compass insiders own about US$94m worth of shares. That equates to 6.5% of the company. 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 Compass Insiders?
It doesn't really mean much that no insider has traded Compass shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Compass and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Compass you should be aware of.
But note: Compass 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.
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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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