Yahoo Finance Trade Alert: The Independent Director Of Grubhub Inc. (NYSE:GRUB), Keith Richman, Has Just Spent US$100k Buying Shares
Whilst it may not be a huge deal, we thought it was good to see that the Grubhub Inc. (NYSE:GRUB) Independent Director, Keith Richman, recently bought US$100k worth of stock, for US$33.31 per share. While that isn't the hugest buy, it actually boosted their shareholding by 108%, which is good to see.
View our latest analysis for Grubhub
The Last 12 Months Of Insider Transactions At Grubhub
In the last twelve months, the biggest single purchase by an insider was when Founder Matthew Maloney bought US$1m worth of shares at a price of US$64.87 per share. That means that an insider was happy to buy shares at above the current price of US$36.14. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 19516 shares worth US$1.2m. But insiders sold 6420 shares worth US$445k. Overall, Grubhub insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. 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.
Does Grubhub Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Grubhub insiders own 0.3% of the company, worth about US$11m. 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 Grubhub Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Grubhub we think they are probably pretty confident of a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Grubhub.
Of course Grubhub 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
