One Shift4 Payments Insider Raised Stake By 17% In Previous Year

Insiders were net buyers of Shift4 Payments, Inc.'s (NYSE:FOUR ) stock during the past year. That is, insiders bought more stock than they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Shift4 Payments

The Last 12 Months Of Insider Transactions At Shift4 Payments

The Founder Jared Isaacman made the biggest insider purchase in the last 12 months. That single transaction was for US$5.8m worth of shares at a price of US$67.09 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$91.55. 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.

Jared Isaacman bought a total of 169.21k shares over the year at an average price of US$66.96. 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!

Shift4 Payments is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Shift4 Payments Have Sold Stock Recently

The last three months saw significant insider selling at Shift4 Payments. In total, Non-Employee Director Sarah Goldsmith-Grover dumped US$80k 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.

Does Shift4 Payments Boast High Insider Ownership?

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. Shift4 Payments insiders own 3.0% of the company, currently worth about US$247m 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?

An insider hasn't bought Shift4 Payments stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So the recent selling doesn't worry us. 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. At Simply Wall St, we found 3 warning signs for Shift4 Payments that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.