Viewing insider transactions for Remitly Global, Inc.'s (NASDAQ:RELY ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Remitly Global
Remitly Global Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Nigel Morris bought US$4.8m worth of shares at a price of US$19.97 per share. That means that even when the share price was higher than US$19.27 (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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Nigel Morris was the only individual insider to buy during the last year.
Nigel Morris bought a total of 300.00k shares over the year at an average price of US$19.36. 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!
Remitly Global is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Remitly Global Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Remitly Global. Independent Director Nigel Morris spent US$5.8m on stock. But Chief Technology Officer Ankur Sinha sold shares worth US$1.1m. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership Of Remitly Global
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Remitly Global insiders own 6.9% of the company, currently worth about US$248m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Remitly Global Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Remitly Global. One for the watchlist, at least! 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. Every company has risks, and we've spotted 2 warning signs for Remitly Global you should know about.
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 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.
