Insiders Buying Inspirato Might Wish They Invested More, Stock Gains 20%

Inspirato Incorporated (NASDAQ:ISPO) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 20%, resulting in a US$7.2m rise in the company's market capitalisation, translating to a gain of 16% on their initial investment. Put another way, the original US$349.8k acquisition is now worth US$405.0k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Inspirato

Inspirato Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Payam Zamani bought US$244k worth of shares at a price of US$3.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.05. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Payam Zamani bought 100.00k shares over the last 12 months at an average price of US$3.50. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insiders At Inspirato Have Bought Stock Recently

At Inspirato,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, insider Payam Zamani bought US$350k worth of shares in that time. On the other hand, insiders netted US$90k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Does Inspirato Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Inspirato insiders own 9.7% of the company, worth about US$3.9m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Inspirato Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. 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. 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. When we did our research, we found 4 warning signs for Inspirato (3 are significant!) that we believe deserve your full attention.

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.