CEO & Chairman of the Board of Inspirato Payam Zamani Buys 27% More Shares

Investors who take an interest in Inspirato Incorporated (NASDAQ:ISPO) should definitely note that the CEO & Chairman of the Board, Payam Zamani, recently paid US$4.57 per share to buy US$135k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 27%.

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The Last 12 Months Of Insider Transactions At Inspirato

In fact, the recent purchase by CEO & Chairman of the Board Payam Zamani was not their only acquisition of Inspirato shares this year. They previously made an even bigger purchase of US$244k worth of shares at a price of US$3.50 per share. So it's clear an insider wanted to buy, at around the current price, which is US$3.88. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Inspirato share holders is that an insider was buying at near the current price. Payam Zamani was the only individual insider to buy shares in the last twelve months.

Payam Zamani bought a total of 139.50k shares over the year at an average price of US$3.76. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Inspirato

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.5% of Inspirato shares, worth about US$4.4m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Inspirato Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Inspirato stock. 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. At Simply Wall St, we've found that Inspirato has 7 warning signs (4 make us uncomfortable!) that deserve your attention before going any further with your analysis.

Of course Inspirato 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.