Potential Wejo Group Limited (NASDAQ:WEJO) shareholders may wish to note that the Founder, Richard Barlow, recently bought US$200k worth of stock, paying US$1.36 for each share. Although the purchase only increased their holding by 1.7%, it is still a solid purchase in our view.
View our latest analysis for Wejo Group
The Last 12 Months Of Insider Transactions At Wejo Group
In fact, the recent purchase by Richard Barlow was the biggest purchase of Wejo Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$1.46 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Wejo Group insiders decided to buy shares at close to current prices.
In the last twelve months Wejo Group insiders were buying shares, but not selling. 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!
Wejo Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Wejo Group
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. It appears that Wejo Group insiders own 16% of the company, worth about US$23m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Wejo Group Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Wejo Group shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Wejo Group you should be aware of, and 1 of them can't be ignored.