Insiders were net buyers of Qurate Retail, Inc.'s (NASDAQ:QRTE.A ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Qurate Retail
The President David Rawlinson made the biggest insider purchase in the last 12 months. That single transaction was for US$72k worth of shares at a price of US$0.72 each. That means that even when the share price was higher than US$0.53 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. David Rawlinson was the only individual insider to buy shares in the last twelve months.
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!
Qurate Retail 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.
Over the last three months, we've seen a bit of insider selling at Qurate Retail. Chief Legal Officer & Chief Administrative Officer Renee Wilm sold just US$36k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
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. Insiders own 10% of Qurate Retail shares, worth about US$24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Qurate Retail insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for Qurate Retail (2 are a bit unpleasant) you should be aware of.
Of course Qurate Retail 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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