Yahoo Finance Are Insiders Buying Gevo, Inc. (NASDAQ:GEVO) Stock?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Gevo, Inc. (NASDAQ:GEVO), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Gevo
Gevo Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Director Johannes Roth for US$422k worth of shares, at about US$3.16 per share. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
Happily, we note that in the last year insiders bought 147.17k shares for a total of US$451k. Overall, Gevo insiders were net buyers last year. Their average price was about US$3.07. This is nice to see since it implies that insiders might see value around current prices (around US$2.55). The chart below shows insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Gevo Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$903k worth of Gevo stock, about 4.9% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Gevo Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if Gevo insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Gevo, you should check out this free report on analyst forecasts for the company.
But note: Gevo 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
