Investors who take an interest in Inspirato Incorporated (NASDAQ:ISPO) should definitely note that the CEO & Chairman of the Board, Payam Zamani, recently paid US$4.57 per share to buy US$135k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 27%.
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In fact, the recent purchase by CEO & Chairman of the Board Payam Zamani was not their only acquisition of Inspirato shares this year. They previously made an even bigger purchase of US$244k worth of shares at a price of US$3.50 per share. So it's clear an insider wanted to buy, at around the current price, which is US$3.88. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Payam Zamani was the only individual insider to buy shares in the last twelve months.
Payam Zamani purchased 139.50k shares over the year. The average price per share was US$3.76. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Inspirato
Inspirato is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Inspirato insiders own about US$4.4m worth of shares (which is 8.5% of the company). We do generally prefer see higher levels of insider ownership.
It is good to see the recent insider purchase. 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 Inspirato stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 7 warning signs for Inspirato (4 can't be ignored!) that we believe deserve your full attention.
Of course Inspirato 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.
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