Published on January 27th, 2023 📆 | 3375 Views ⚑
0With stock up 10%, Insiders of Quotient Technology Inc. (NYSE:QUOT) must be wishing they had bought more last year
Insiders who bought Quotient Technology Inc. (NYSE:QUOT) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$34m as a result of the stock's 10% gain over the same period. Put another way, the original US$319k acquisition is now worth US$424k.
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 Quotient Technology
Quotient Technology Insider Transactions Over The Last Year
The Independent Director Andrew Gessow made the biggest insider purchase in the last 12 months. That single transaction was for US$102k worth of shares at a price of US$4.08 each. That means that an insider was happy to buy shares at above the current price of US$3.82. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 111.00k shares for US$319k. But insiders sold 25.83k shares worth US$80k. In the last twelve months there was more buying than selling by Quotient Technology insiders. They paid about US$2.87 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Quotient Technology Insiders Bought Stock Recently
We saw some Quotient Technology insider buying shares in the last three months. They bought US$108k worth in that time. But President Scott Raskin sold US$80k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Insider Ownership Of Quotient Technology
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Quotient Technology insiders own 9.4% of the company, worth about US$35m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Quotient Technology Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Quotient Technology and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Quotient Technology. At Simply Wall St, we found 2 warning signs for Quotient Technology that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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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