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Viewing insider transactions for Shift4 Payments, Inc.'s (NYSE:FOUR ) 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.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Shift4 Payments
In the last twelve months, the biggest single purchase by an insider was when Founder Jared Isaacman bought US$5.8m worth of shares at a price of US$67.09 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$74.75. 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.
Jared Isaacman bought 169.21k shares over the last 12 months at an average price of US$66.96. 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!
See our latest analysis for Shift4 Payments
Shift4 Payments is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Shift4 Payments Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Shift4 Payments insiders own about US$182m worth of shares (which is 2.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Shift4 Payments Tell Us?
It doesn't really mean much that no insider has traded Shift4 Payments shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Shift4 Payments insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the 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 help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Shift4 Payments.