We'd be surprised if GreenBox POS (NASDAQ:GBOX) shareholders haven't noticed that the Chief Financial Officer, Benjamin Chung, recently sold US$138k worth of stock at US$3.46 per share. That sale was 50% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At GreenBox POS
Over the last year, we can see that the biggest insider sale was by the President of Payments, Kenneth Haller, for US$11m worth of shares, at about US$17.89 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$3.63. So it may not tell us anything about how insiders feel about the current share price.
All up, insiders sold more shares in GreenBox POS than they bought, over the last year. They sold for an average price of about US$10.61. Insider selling doesn't make us excited to buy. But the selling was at much higher prices than the current share price (US$3.63), so it probably doesn't tell us a lot about the value on offer today. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that GreenBox POS insiders own 7.2% of the company, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The GreenBox POS Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at GreenBox POS, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for GreenBox POS (of which 1 is a bit unpleasant!) you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
