Insider Buying: Advantage Solutions Chief Financial Officer Bought US$71k Of Shares \

Even if it's not a huge purchase, we think it was good to see that Christopher Growe, the Chief Financial Officer of Advantage Solutions Inc. (NASDAQ:ADV) recently shelled out US$71k to buy stock, at US$1.43 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Advantage Solutions

Advantage Solutions Insider Transactions Over The Last Year

The Independent Director Brian Ratzan made the biggest insider purchase in the last 12 months. That single transaction was for US$247k worth of shares at a price of US$2.47 each. That means that even when the share price was higher than US$1.64 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Advantage Solutions insiders were buying shares, but not selling. The average buy price was around US$2.12. 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Advantage Solutions is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Advantage Solutions

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Advantage Solutions insiders own 0.7% of the company, worth about US$3.7m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Advantage Solutions Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Advantage Solutions insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Advantage Solutions. Every company has risks, and we've spotted 1 warning sign for Advantage Solutions you should know about.

Of course Advantage Solutions may not be the best stock to buy. So you may wish 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 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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