Have Grocery Outlet Holding Insiders Been Selling Stock?

Anyone interested in Grocery Outlet Holding Corp. (NASDAQ:GO) should probably be aware that the Executive VP & Chief Purchasing Officer, Steven Wilson, recently divested US$313k worth of shares in the company, at an average price of US$12.53 each. The eyebrow raising move amounted to a reduction of 20% in their holding.

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The Last 12 Months Of Insider Transactions At Grocery Outlet Holding

The Lead Independent Director Erik Ragatz made the biggest insider purchase in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$12.25 each. That means that even when the share price was higher than US$11.40 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 348.00k shares worth US$4.9m. On the other hand they divested 173.00k shares, for US$2.5m. In the last twelve months there was more buying than selling by Grocery Outlet Holding insiders. The average buy price was around US$14.18. 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!

View our latest analysis for Grocery Outlet Holding

Grocery Outlet Holding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Grocery Outlet Holding Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.4% of Grocery Outlet Holding shares, worth about US$49m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Grocery Outlet Holding Tell Us?

An insider sold Grocery Outlet Holding shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're happy enough to look past some selling. 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 Grocery Outlet Holding 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.