Sow Good Insiders Up US$4.9m On US$3.30m Investment

Sow Good Inc. (NASDAQ:SOWG) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 14% decline in the stock price. Even after accounting for the recent loss, the US$3.30m worth of stock purchased by them is now worth US$8.21m or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Sow Good

The Last 12 Months Of Insider Transactions At Sow Good

In the last twelve months, the biggest single purchase by an insider was when insider Benno Fischer bought US$1.1m worth of shares at a price of US$7.25 per share. Even though the purchase was made at a significantly lower price than the recent price (US$16.15), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Sow Good insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$6.50. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Sow Good

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Sow Good insiders own 50% of the company, currently worth about US$85m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Sow Good Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Sow Good insiders feel good about the company's future. 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. Every company has risks, and we've spotted 2 warning signs for Sow Good you should know about.

Of course Sow Good 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.