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This Insider Has Just Sold Shares In Porch Group
We wouldn't blame Porch Group, Inc. (NASDAQ:PRCH) shareholders if they were a little worried about the fact that Matthew Ehrlichman, the Founder recently netted about US$2.2m selling shares at an average price of US$20.15. However, that sale only accounted for 0.5% of their holding, so arguably it doesn't say much about their conviction.
Porch Group Insider Transactions Over The Last Year
In fact, the recent sale by Matthew Ehrlichman was the biggest sale of Porch Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$21.31). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 0.5% of Matthew Ehrlichman's holding.
Porch Group insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Porch Group
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Porch Group insiders own 21% of the company, currently worth about US$530m based on the recent share price. 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 Porch Group Insider Transactions Indicate?
Insiders sold Porch Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 3 warning signs for Porch Group you should be aware of, and 1 of them is a bit concerning.
But note: Porch Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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