Insiders Enjoy US$6.2m Return After Buying Shift4 Payments Stock

Insiders who bought Shift4 Payments, Inc. (NYSE:FOUR) in the last 12 months may probably not pay attention to the stock's recent 11% drop. After accounting for the recent loss, the US$11.3m worth of shares they purchased is now worth US$17.5m, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Shift4 Payments

Shift4 Payments Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Founder Jared Isaacman bought US$5.8m worth of shares at a price of US$67.09 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$104. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Jared Isaacman purchased 169.21k shares over the year. The average price per share was US$66.96. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Shift4 Payments 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.

Shift4 Payments Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Shift4 Payments shares. In total, Secretary Jordan Frankel sold US$318k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Shift4 Payments

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Shift4 Payments insiders own about US$320m worth of shares (which is 2.9% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Shift4 Payments Insider Transactions Indicate?

An insider hasn't bought Shift4 Payments stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So we're happy to look past recent trading. 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. Case in point: We've spotted 2 warning signs for Shift4 Payments you should be aware of, and 1 of these is a bit concerning.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.