Looking at Bitcoin Depot Inc.’s (NASDAQ:BTM ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Bitcoin Depot
Over the last year, we can see that the biggest insider purchase was by insider Andrew Paul for US$228k worth of shares, at about US$1.70 per share. That means that an insider was happy to buy shares at around the current price of US$1.79. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Bitcoin Depot insider decided to buy shares at close to current prices. Andrew Paul was the only individual insider to buy shares in the last twelve months.
Andrew Paul purchased 155.79k shares over the year. The average price per share was US$1.65. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Bitcoin Depot insiders own about US$2.9m worth of shares (which is 8.9% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
It doesn’t really mean much that no insider has traded Bitcoin Depot shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we’d be more comfortable if they owned more Bitcoin Depot stock. 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. Case in point: We’ve spotted 3 warning signs for Bitcoin Depot you should be aware of, and 2 of these don’t sit too well with us.
