Stock Analysis

Possible turnaround for Helbiz, Inc. (NASDAQ:HLBZ) insiders, still down US$7.2m after a US$9.2m shopping spree

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NasdaqCM:HLBZ
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Insiders who purchased US$9.2m worth of Helbiz, Inc. (NASDAQ:HLBZ) shares over the past year recouped some of their losses after price gained 15% last week. However, total losses seen by insiders are still US$7.2m but in since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Our analysis indicates that HLBZ is potentially overvalued!

Helbiz Insider Transactions Over The Last Year

The Founder Salvatore Palella made the biggest insider purchase in the last 12 months. That single transaction was for US$2.4m worth of shares at a price of US$1.50 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.22). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Helbiz insiders were buying shares, but not selling. They paid about US$0.98 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqCM:HLBZ Insider Trading Volume December 1st 2022

Helbiz is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Helbiz Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Helbiz. In total, insiders bought US$846k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership Of Helbiz

Many investors like to check how much of a company is owned by 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. Insiders own 25% of Helbiz shares, worth about US$6.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Helbiz Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Helbiz shares, given these transactions (along with notable insider ownership of the company). While we like knowing 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. Our analysis shows 5 warning signs for Helbiz (4 are concerning!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

What are the risks and opportunities for Helbiz?

Helbiz, Inc., an intra-urban transportation company, provides micro-mobility services in Italy and the United States.

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Rewards

  • Revenue grew by 51.1% over the past year

Risks

  • Highly volatile share price over the past 3 months

  • Shareholders have been substantially diluted in the past year

  • Negative shareholders equity

  • Does not have a meaningful market cap ($58M)

View all Risks and Rewards

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Market Cap

1Y Return

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