GrowGeneration Corp. (NASDAQ:GRWG) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Darren Lampert, recently bought a whopping US$994k worth of stock, at a price of US$2.00. That purchase boosted their holding by 60%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
View our latest analysis for GrowGeneration
GrowGeneration Insider Transactions Over The Last Year
In fact, the recent purchase by Darren Lampert was the biggest purchase of GrowGeneration 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$2.45. Of course they may have changed their mind. But this suggests they are optimistic. 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 GrowGeneration insider decided to buy shares at close to current prices. Darren Lampert 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. By clicking on the graph below, you can see the precise details of each insider transaction!
GrowGeneration is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. We usually like to see fairly high levels of insider ownership. From our data, it seems that GrowGeneration insiders own 4.8% of the company, worth about US$7.2m. We do generally prefer see higher levels of insider ownership.
So What Do The GrowGeneration Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that GrowGeneration insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for GrowGeneration and we suggest you have a look.
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.