Shift4 Payments Insider Ups Holding By 17% During 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.

See our latest analysis for Shift4 Payments

The Last 12 Months Of Insider Transactions At Shift4 Payments

Notably, that recent purchase by Founder Jared Isaacman was not the only time they bought Shift4 Payments shares this year. They previously made an even bigger purchase of US$5.8m worth of shares at a price of US$67.09 per share. That implies that an insider found the current price of US$71.14 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Shift4 Payments share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Jared Isaacman.

Jared Isaacman purchased 169.21k shares over the year. The average price per share was US$66.96. 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!

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.

Insiders At Shift4 Payments Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Shift4 Payments. We can see that Founder Jared Isaacman paid US$11m for shares in the company. On the other hand, insiders netted US$795k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Shift4 Payments insiders own 2.9% of the company, worth about US$178m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Shift4 Payments Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. 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. In terms of investment risks, we've identified 3 warning signs with Shift4 Payments and understanding them should be part of your investment process.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com