Insiders were net buyers of Remitly Global, Inc.'s (NASDAQ:RELY ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Remitly Global Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Nigel Morris for US$4.8m worth of shares, at about US$19.97 per share. So it's clear an insider wanted to buy, at around the current price, which is US$20.13. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Remitly Global insider decided to buy shares at close to current prices. Nigel Morris was the only individual insider to buy shares in the last twelve months.
Nigel Morris purchased 300.00k shares over the year. The average price per share was US$19.36. 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!
Remitly Global is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Remitly Global Insiders Are Selling The Stock
The last three months saw significant insider selling at Remitly Global. In total, Chief Technology Officer Ankur Sinha sold US$714k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Remitly Global Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Remitly Global insiders own about US$259m worth of shares (which is 6.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Remitly Global Insider Transactions Indicate?
An insider sold Remitly Global shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Remitly Global. You'd be interested to know, that we found 2 warning signs for Remitly Global 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.