Goosehead Insurance Insiders Placed Bullish Bets Worth US$699.9k

Over the last year, a good number of insiders have significantly increased their holdings in Goosehead Insurance, Inc (NASDAQ:GSHD). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Goosehead Insurance Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Mark Miller for US$581k worth of shares, at about US$58.14 per share. We do like to see buying, but this purchase was made at well below the current price of US$120. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Goosehead Insurance insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Goosehead Insurance

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Goosehead Insurance Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Goosehead Insurance. Chief Financial Officer Mark Jones spent US$119k on stock, and there wasn't any selling. This makes one think the business has some good points.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Goosehead Insurance insiders own 1.3% of the company, worth about US$56m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Goosehead Insurance Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Goosehead Insurance shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Goosehead Insurance you should know about.

Of course Goosehead Insurance 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.