In This Article:
Insiders who bought US$329.3k worth of Stryve Foods, Inc. (NASDAQ:SNAX) stock in the last year recovered part of their losses as the stock rose by 16% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$129k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Stryve Foods
The Last 12 Months Of Insider Transactions At Stryve Foods
Over the last year, we can see that the biggest insider purchase was by CEO & Director Christopher Boever for US$89k worth of shares, at about US$4.04 per share. That means that even when the share price was higher than US$2.18 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Christopher Boever was the only individual insider to buy during the last year.
Christopher Boever bought a total of 91.86k shares over the year at an average price of US$3.59. 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. If investing in lesser known companies is your style, 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. We usually like to see fairly high levels of insider ownership. It appears that Stryve Foods insiders own 38% of the company, worth about US$2.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Stryve Foods Insiders?
It doesn't really mean much that no insider has traded Stryve Foods shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Stryve Foods and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Stryve Foods you should be aware of, and 3 of these don't sit too well with us.