Shoals Technologies Group Insiders Are Down US$34k But Regain Some Losses

Insiders who bought US$270.1k worth of Shoals Technologies Group, Inc. (NASDAQ:SHLS) stock in the last year recovered part of their losses as the stock rose by 16% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$34k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Shoals Technologies Group

Shoals Technologies Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Director & CEO Brandon Moss for US$101k worth of shares, at about US$4.55 per share. That means that an insider was happy to buy shares at above the current price of US$3.26. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Brandon Moss was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 72.30k shares for US$270k. But insiders sold 49.50k shares worth US$170k. In total, Shoals Technologies Group insiders bought more than they sold over the last year. The average buy price was around US$3.74. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Shoals Technologies Group Insiders Are Selling The Stock

The last three months saw some Shoals Technologies Group insider selling. The selling netted US$124k for insiders. But at least we saw US$98k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership Of Shoals Technologies Group

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. From looking at our data, insiders own US$2.5m worth of Shoals Technologies Group stock, about 0.5% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Shoals Technologies Group Tell Us?

Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Shoals Technologies Group insiders are doubting the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Shoals Technologies Group that deserve your attention before buying any shares.

Of course Shoals Technologies Group 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.