Investors who take an interest in SmartRent, Inc. (NYSE:SMRT) should definitely note that the Independent Director, Robert Best, recently paid US$3.65 per share to buy US$307k worth of the stock. Although the purchase only increased their holding by 1.7%, it is still a solid purchase in our view.
View our latest analysis for SmartRent
The Last 12 Months Of Insider Transactions At SmartRent
Notably, that recent purchase by Independent Director Robert Best was not the only time they bought SmartRent shares this year. Earlier in the year, they paid US$4.64 per share in a US$1.0m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.66). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 409.66k shares worth US$2.2m. But they sold 165.00k shares for US$825k. In total, SmartRent insiders bought more than they sold over the last year. They paid about US$5.34 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insider Ownership Of SmartRent
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that SmartRent insiders own 9.4% of the company, worth about US$68m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At SmartRent 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. Given that insiders also own a fair bit of SmartRent we think they are probably pretty confident of a bright future. 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. Every company has risks, and we've spotted 2 warning signs for SmartRent you should know about.