Gloo Holdings Executive Chairman & Head of Technology Acquires 16% More Stock

Potential Gloo Holdings, Inc. (NASDAQ:GLOO) shareholders may wish to note that the Executive Chairman & Head of Technology, Patrick Gelsinger, recently bought US$167k worth of stock, paying US$3.34 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.

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Gloo Holdings Insider Transactions Over The Last Year

The Co-Founder Scott Beck made the biggest insider purchase in the last 12 months. That single transaction was for US$3.5m worth of shares at a price of US$3.25 each. So it's clear an insider wanted to buy, at around the current price, which is US$3.33. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Gloo Holdings share holders is that insiders were buying at near the current price.

Gloo Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about US$4.99 on average. These transactions suggest that insiders have considered the current price attractive. 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!

View our latest analysis for Gloo Holdings

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Gloo Holdings 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Gloo Holdings insiders own about US$146m worth of shares (which is 48% of the company). 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 Gloo Holdings Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give 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 Gloo Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gloo Holdings. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Gloo Holdings.

Of course Gloo Holdings 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.