Surf Air Mobility Gains 17%, Insider Trades Reap Benefit

Insiders who bought Surf Air Mobility Inc. (NYSE:SRFM) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$11m as a result of the stock's 17% gain over the same period. In other words, the original US$59.1k purchase is now worth US$85.0k.

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.

View our latest analysis for Surf Air Mobility

The Last 12 Months Of Insider Transactions At Surf Air Mobility

Over the last year, we can see that the biggest insider purchase was by Co-Founder & Director Sudhin Shahani for US$59k worth of shares, at about US$3.43 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.93. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Surf Air Mobility Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Surf Air Mobility insiders own 9.6% of the company, worth about US$7.8m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Surf Air Mobility Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. 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 Surf Air Mobility stock. While it's good to be aware of 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. Be aware that Surf Air Mobility is showing 5 warning signs in our investment analysis, and 3 of those are significant...

Of course Surf Air Mobility 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.