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Investors who take an interest in Porch Group, Inc. (NASDAQ:PRCH) should definitely note that the Founder, Matthew Ehrlichman, recently paid US$0.79 per share to buy US$468k worth of the stock. Although the purchase only increased their holding by 3.5%, it is still a solid purchase in our view.
Check out our latest analysis for Porch Group
The Last 12 Months Of Insider Transactions At Porch Group
Notably, that recent purchase by Founder Matthew Ehrlichman was not the only time they bought Porch Group shares this year. They previously made an even bigger purchase of US$502k worth of shares at a price of US$1.81 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.92). 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Porch Group insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$1.27. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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).
Does Porch Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Porch Group insiders own about US$16m worth of shares. That equates to 19% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Porch Group Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Porch Group shares, given these transactions (along with notable insider ownership of the company). 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. For instance, we've identified 4 warning signs for Porch Group (1 is a bit concerning) you should be aware of.