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Investors who take an interest in GrowGeneration Corp. (NASDAQ:GRWG) should definitely note that the Co-Founder, Michael Salaman, recently paid US$1.21 per share to buy US$103k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.3%.
GrowGeneration Insider Transactions Over The Last Year
In fact, the recent purchase by Co-Founder Michael Salaman was not their only acquisition of GrowGeneration shares this year. They previously made an even bigger purchase of US$198k worth of shares at a price of US$1.90 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.27). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
GrowGeneration insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$1.69. These transactions suggest that insiders have considered the current price attractive. 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!
See our latest analysis for GrowGeneration
GrowGeneration is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of GrowGeneration
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.6% of GrowGeneration shares, worth about US$6.3m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At GrowGeneration Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that GrowGeneration insiders are expecting a bright 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of GrowGeneration.