Viewing insider transactions for FaZe Holdings Inc.'s (NASDAQ:FAZE ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares 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.
Check out our latest analysis for FaZe Holdings
FaZe Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Bryant Riley for US$2.0m worth of shares, at about US$10.00 per share. Even though the purchase was made at a significantly lower price than the recent price (US$14.38), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
The chart below shows insider transactions (by companies and 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!
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).
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. FaZe Holdings insiders own about US$188m worth of shares (which is 18% 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 Does This Data Suggest About FaZe Holdings Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest FaZe Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FaZe Holdings. For example - FaZe Holdings has 2 warning signs we think you should be aware of.
But note: FaZe Holdings 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.