Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Remitly Global, Inc. (NASDAQ:RELY), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Remitly Global Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Matthew Oppenheimer bought US$244k worth of shares at a price of US$17.78 per share. That means that even when the share price was higher than US$10.49 (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. 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.
In the last twelve months insiders purchased 26.55k shares for US$490k. On the other hand they divested 5.97k shares, for US$60k. In the last twelve months there was more buying than selling by Remitly Global insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Remitly Global Have Sold Stock Recently
The last quarter saw substantial insider selling of Remitly Global shares. Specifically, EVP of Customer & Culture Rene Yoakum ditched US$60k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Remitly Global insiders own about US$115m worth of shares (which is 6.4% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Remitly Global Insider Transactions Indicate?
An insider hasn't bought Remitly Global stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. 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. Case in point: We've spotted 4 warning signs for Remitly Global you should be aware of, and 1 of them shouldn't be ignored.
Of course Remitly Global may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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