Jared Isaacman Spends US$16m Buying Shift4 Payments Shares

Shift4 Payments, Inc. (NYSE:FOUR) shareholders (or potential shareholders) will be happy to see that insider Jared Isaacman recently bought a whopping US$16m worth of stock, at a price of US$41.04. While that only increased their holding size by 1.7%, it is still a big swing by our standards.

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Shift4 Payments Insider Transactions Over The Last Year

In fact, the recent purchase by insider Jared Isaacman was not their only acquisition of Shift4 Payments shares this year. Earlier in the year, they paid US$83.61 per share in a US$16m purchase. That means that even when the share price was higher than US$42.02 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Jared Isaacman.

Jared Isaacman bought 970.68k shares over the last 12 months at an average price of US$51.38. 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!

Check out our latest analysis for Shift4 Payments

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.

Does Shift4 Payments 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. Shift4 Payments insiders own 29% of the company, currently worth about US$975m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Shift4 Payments Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Shift4 Payments insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Shift4 Payments you should be aware of, and 1 of these doesn't sit too well with us.

Of course Shift4 Payments 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.