Insiders who bought US$2.9m worth of BTRS Holdings Inc. (NASDAQ:BTRS) stock in the last year recovered part of their losses as the stock rose by 6.7% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$1.0m since the time of purchase.
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.
The Last 12 Months Of Insider Transactions At BTRS Holdings
Over the last year, we can see that the biggest insider purchase was by Founder Flint Lane for US$1.0m worth of shares, at about US$10.14 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.41). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$2.9m for 350.05k shares. On the other hand they divested 38.46k shares, for US$290k. Overall, BTRS Holdings insiders were net buyers during the last year. They paid about US$8.32 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
BTRS Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
BTRS Holdings Insiders Bought Stock Recently
At BTRS Holdings,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, two insiders bought US$248k worth of shares in that time. But we did see insider selling worth US$90k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does BTRS Holdings Boast High Insider Ownership?
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. It's great to see that BTRS Holdings insiders own 16% of the company, worth about US$144m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The BTRS Holdings Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest BTRS Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BTRS Holdings. At Simply Wall St, we found 3 warning signs for BTRS Holdings that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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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.
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