Positive Signs As Multiple Insiders Buy Quotient Technology Stock

Positive Signs As Multiple Insiders Buy Quotient Technology Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Quotient Technology Inc.'s (NYSE:QUOT) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Quotient Technology

The Last 12 Months Of Insider Transactions At Quotient Technology

Over the last year, we can see that the biggest insider sale was by the insider, Scott Raskin, for US$80k worth of shares, at about US$3.11 per share. That means that an insider was selling shares at slightly below the current price (US$3.90). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 7.3% of Scott Raskin's holding. The only individual insider seller over the last year was Scott Raskin.

Happily, we note that in the last year insiders paid US$217k for 86.00k shares. On the other hand they divested 25.83k shares, for US$80k. In total, Quotient Technology insiders bought more than they sold over the last year. 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!

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NYSE:QUOT Insider Trading Volume July 20th 2023

Quotient Technology is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Quotient Technology

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. It appears that Quotient Technology insiders own 4.9% of the company, worth about US$19m. 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 Does This Data Suggest About Quotient Technology Insiders?

It doesn't really mean much that no insider has traded Quotient Technology shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Quotient Technology and we see no evidence to suggest they are worried about the future. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Quotient Technology.