Trade Alert: The Founder Of Shutterstock, Inc. (NYSE:SSTK), Jonathan Oringer, Has Just Spent US$3.1m Buying A Few More Shares

Shutterstock, Inc. (NYSE:SSTK) shareholders (or potential shareholders) will be happy to see that the Founder, Jonathan Oringer, recently bought a whopping US$3.1m worth of stock, at a price of US$67.48. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.4%.

Check out our latest analysis for Shutterstock

Shutterstock Insider Transactions Over The Last Year

Notably, that recent purchase by Jonathan Oringer is the biggest insider purchase of Shutterstock shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$66.21). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Jonathan Oringer.

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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Shutterstock

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Shutterstock insiders own 33% of the company, currently worth about US$801m based on the recent share price. 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 Do The Shutterstock Insider Transactions Indicate?

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 Shutterstock insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Shutterstock has 1 warning sign we think you should be aware of.

But note: Shutterstock may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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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.