Insider Spends US$102k Buying More Shares In GrowGeneration

Potential GrowGeneration Corp. (NASDAQ:GRWG) shareholders may wish to note that the Co-Founder, Michael Salaman, recently bought US$102k worth of stock, paying US$1.74 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.3%.

Check out our latest analysis for GrowGeneration

GrowGeneration Insider Transactions Over The Last Year

Notably, that recent purchase by Co-Founder Michael Salaman was not the only time they bought GrowGeneration shares this year. They previously made an even bigger purchase of US$198k worth of shares at a price of US$1.90 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.86). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While GrowGeneration 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

GrowGeneration 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.

Does GrowGeneration Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 7.9% of GrowGeneration shares, worth about US$8.7m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The GrowGeneration Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on GrowGeneration stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GrowGeneration. In terms of investment risks, we've identified 1 warning sign with GrowGeneration and understanding this should be part of your investment process.

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.