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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in SmartRent, Inc.'s (NYSE:SMRT) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for SmartRent
The Last 12 Months Of Insider Transactions At SmartRent
The Director Frank Martell made the biggest insider purchase in the last 12 months. That single transaction was for US$144k worth of shares at a price of US$1.49 each. Even though the purchase was made at a significantly lower price than the recent price (US$1.67), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While SmartRent insiders bought shares during the last year, they didn't sell. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
SmartRent Insiders Bought Stock Recently
It's good to see that SmartRent insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$159k for shares in the company -- and none sold. That shows some optimism about the company's future.
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. We usually like to see fairly high levels of insider ownership. SmartRent insiders own about US$33m worth of shares. That equates to 9.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At SmartRent Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. 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 SmartRent insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. You'd be interested to know, that we found 1 warning sign for SmartRent and we suggest you have a look.