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$1.2m selling shares at an average price of US$17.24. However, that sale only accounted for 0.3% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Porch Group
In fact, the recent sale by Founder Matthew Ehrlichman was not their only sale of Porch Group shares this year. They previously made an even bigger sale of -US$1.3m worth of shares at a price of US$10.52 per share. That means that an insider was selling shares at slightly below the current price (US$17.53). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 0.5% of Matthew Ehrlichman's stake.
Insiders in Porch Group didn't buy any shares in the last year. 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 Porch Group
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Does Porch Group Boast High 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. We usually like to see fairly high levels of insider ownership. Porch Group insiders own about US$430m worth of shares (which is 22% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Porch Group Tell Us?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Case in point: We've spotted 1 warning sign for Porch Group you should be aware of.
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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.