Insiders Of Grindr Are Up 88% On Their US$2.15m Purchase

Grindr Inc. (NYSE:GRND) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 19% resulting in a US$335m addition to the company’s market value. As a result, their original purchase of US$2.15m worth of stock is now worth US$4.05m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Grindr

Grindr Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director George Raymond Zage bought US$624k worth of shares at a price of US$7.80 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.82. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$2.2m for 342.94k shares. But they sold 682.17k shares for US$607k. In the last twelve months there was more buying than selling by Grindr insiders. They paid about US$6.27 on average. To my mind it is good 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Grindr Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Grindr. Specifically, Independent Chairperson Fu Bin Lu ditched US$189k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Grindr Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Grindr insiders own 56% of the company, worth about US$1.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Grindr Tell Us?

An insider hasn't bought Grindr stock in the last three months, but there was some selling. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Grindr. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Grindr.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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