When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Shutterstock, Inc.'s (NYSE:SSTK) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Shutterstock Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Paul Hennessy bought US$480k worth of shares at a price of US$38.59 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$38.01). 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.
In the last twelve months Shutterstock insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Shutterstock is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Shutterstock Insiders Bought Stock Recently
Over the last quarter, Shutterstock insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$680k worth of shares. This makes one think the business has some good points.
Does Shutterstock 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's great to see that Shutterstock insiders own 31% of the company, worth about US$423m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Shutterstock Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Shutterstock. Nice! 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 1 warning sign for Shutterstock you should be aware of.
Of course Shutterstock 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com