Yahoo Finance Bullish insiders bet US$671k on Rent the Runway, Inc. (NASDAQ:RENT)
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Rent the Runway, Inc. (NASDAQ:RENT), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Rent the Runway
The Last 12 Months Of Insider Transactions At Rent the Runway
In the last twelve months, the biggest single purchase by an insider was when Independent Director Carley Roney bought US$263k worth of shares at a price of US$21.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.83). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Rent the Runway insiders bought shares during the last year, they didn't sell. They paid about US$16.45 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Rent the Runway is not the only stock that insiders are buying. 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 Rent the Runway insiders own 5.5% of the company, worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Rent the Runway Tell Us?
It doesn't really mean much that no insider has traded Rent the Runway shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Rent the Runway and we see no evidence to suggest they are worried about the future. 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. Every company has risks, and we've spotted 2 warning signs for Rent the Runway you should know about.
But note: Rent the Runway may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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