SowGood Inc. (NASDAQ:SOWG) insiders who purchased shares in the last 12 months can probably afford to ignore the recent 14% drop in the share price. Even after accounting for the recent loss, the $3.30 million worth of shares they purchased are now worth $8.21 million, or in other words, their investment continues to produce good returns.

While we would never suggest that investors should base their decisions solely on the activities of a company’s management, we think it is perfectly logical to keep an eye on the activities of insiders.

Check out our latest analysis for Sow Good

The last 12 months of insider transactions at Sow Good

The largest single purchase by an insider in the last twelve months was the purchase of US$1.1 million worth of shares by insider Benno Fischer at a price of US$7.25 per share. Even though the purchase was made at a significantly lower price than the current price (US$16.15), we still consider insider purchases to be positive. Because the purchase was made at a lower valuation, they don’t tell us much about whether insiders might find today’s price attractive.

Sow Good insiders may have bought shares over the last year, but they haven’t sold any. Their average price was around $6.50. It’s certainly positive to see that insiders have invested their own money in the company. However, we note that they were buying at significantly lower prices than today’s share price. Below is a visual representation of insider transactions (both companies and individuals) over the last 12 months. If you click on the chart, you can see all the individual transactions including share price, individual, and date!

There are always plenty of stocks that insiders are buying. If you like investing in lesser-known companies, you might want to check this out. free List of companies. (Note: insiders bought them).

Insider ownership of Sow Good

Many investors like to check how much of a company is owned by insiders. We usually like to see a relatively high level of insider ownership. Good insiders own 50% of the company, which is currently worth about $85 million based on the current share price. Most shareholders would be happy to see this level of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.

What could Sow Good’s insider transactions tell us?

There have been no insider transactions in the last three months – that doesn’t mean much. However, our analysis of transactions over the last year is encouraging. Judging by their transactions and the high percentage of insiders, Sow Good’s insiders are confident about the company’s future. While it’s good to know about insider holdings and transactions, we make sure to also consider the risks a stock faces before making an investment decision. Every company has risks, and we’ve found 2 warning signs for Sow Good You should know about this.

Naturally “Sow Good” may not be the best stock to buy. You may want 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 regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.