Insider Spends US$275k Buying More Shares In Grocery Outlet Holding

Investors who take an interest in Grocery Outlet Holding Corp. (NASDAQ:GO) should definitely note that the Lead Independent Director, Erik Ragatz, recently paid US$14.46 per share to buy US$275k worth of the stock. Although the purchase only increased their holding by 2.4%, it is still a solid purchase in our view.

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The Last 12 Months Of Insider Transactions At Grocery Outlet Holding

Notably, that recent purchase by Lead Independent Director Erik Ragatz was not the only time they bought Grocery Outlet Holding shares this year. They previously made an even bigger purchase of US$2.0m worth of shares at a price of US$12.25 per share. That means that an insider was happy to buy shares at around the current price of US$13.48. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Grocery Outlet Holding insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 348.00k shares worth US$4.9m. On the other hand they divested 122.96k shares, for US$1.7m. Overall, Grocery Outlet Holding insiders were net buyers during the last year. They paid about US$14.18 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. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Grocery Outlet Holding

Grocery Outlet Holding is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Grocery Outlet Holding

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. It appears that Grocery Outlet Holding insiders own 4.2% of the company, worth about US$57m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Grocery Outlet Holding Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Grocery Outlet Holding shares, given these transactions (along with notable insider ownership of the company). 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. For example - Grocery Outlet Holding has 2 warning signs we think you should be aware of.

Of course Grocery Outlet Holding 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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