Investors who take an interest in Rocket Companies, Inc. (NYSE:RKT) should definitely note that the Vice Chairman & CEO, Jay Farner, recently paid US$7.85 per share to buy US$199k worth of the stock. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.3%.
Check out our latest analysis for Rocket Companies
The Last 12 Months Of Insider Transactions At Rocket Companies
Notably, that recent purchase by Vice Chairman & CEO Jay Farner was not the only time they bought Rocket Companies shares this year. They previously made an even bigger purchase of US$400k worth of shares at a price of US$8.22 per share. So it’s clear an insider wanted to buy, at around the current price, which is US$8.75. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. Happily, the Rocket Companies insiders decided to buy shares at close to current prices.
Rocket Companies insiders may have bought shares in the last year, but they didn’t sell any. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. Rocket Companies insiders own about US$22m worth of shares. That equates to 0.1% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Rocket Companies Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Rocket Companies shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Rocket Companies. At Simply Wall St, we found 1 warning sign for Rocket Companies that deserve your attention before buying any shares.
Of course Rocket Companies 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, but not derivative transactions.
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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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