Multiple Insiders Show Interest in Goosehead Insurance with Positive Developments

While a single insider purchasing stock might not raise eyebrows, when a group of insiders are involved, like in the case of Goosehead Insurance, Inc. (NASDAQ: GSHD), it’s certainly noteworthy and uplifting for shareholders.

Although we don’t advocate solely basing investment decisions on insider actions, it’s reasonable to monitor their activities as part of the overall picture.

Reviewing the Last Year’s Insider Transactions at Goosehead Insurance

Over the past year, it’s apparent that the most substantial insider acquisition was carried out by President Mark Miller, who purchased shares valued at US$320k, around US$41.15 per share. Despite the purchase being at a notably lower price than the current market price (US$59.17), the insider buying remains a positive indicator. Given the lower valuation at the time of the transaction, it doesn’t provide a strong indication of the attractiveness of today’s price.

In the previous twelve months, insiders acquired 10.09k shares for a total of US$404k. On the flip side, insiders sold 2.57k shares worth US$106k. Overall, the net activity of Goosehead Insurance insiders over the past year was on the buying side. The chart below provides a visual representation of the insider transactions, involving both companies and individuals, over the past year. By clicking on the chart, you can delve into individual transactions, including share prices, individuals, and dates.

It’s not uncommon to come across various stocks with insider purchases. If this aligns with your investment approach, you can either review each stock individually or explore this list of companies with recent insider buying (hint: insiders have been actively buying shares).

Insider Ownership of Goosehead Insurance

Another method to assess alignment between company leadership and shareholders is to examine the extent of insiders’ ownership of shares. A significant insider ownership is generally seen as a positive sign. At Goosehead Insurance, insiders collectively possess around US$110 million worth of shares, accounting for 4.9% of the company. This substantial insider ownership boosts confidence that management has shareholders’ best interests in mind.

Insight from Insider Transactions at Goosehead Insurance

The absence of insider transactions over the last three months might not be of high significance. However, the increased appetite for the stock among insiders over the past year carries more weight. The pattern of transactions, coupled with the notable insider ownership, reflects the positive outlook that Goosehead Insurance insiders hold for the company’s future.

In addition to monitoring insider activities, it’s prudent to identify potential risks that Goosehead Insurance might face. Our research identified 4 warning signs for Goosehead Insurance (1 of which cannot be ignored) that merit close attention.

Of course, there could be excellent investment opportunities elsewhere, so consider exploring this free list of intriguing companies.

Please note that for the purposes of this article, insiders refer to individuals who report their transactions to regulatory bodies. Our analysis covers open market transactions and private dispositions, but not derivative transactions.