Bullish Shutterstock Insiders Loaded Up On US$679.5k Of Stock

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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 Shutterstock, Inc. (NYSE:SSTK), that sends out a positive message to the company’s shareholders.

Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Shutterstock

Shutterstock Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Paul Hennessy bought US$480k worth of shares at a price of US$38.59 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$38.03). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.

Shutterstock insiders may have bought shares in the last year, but they didn’t sell any. 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!

insider-trading-volume

Shutterstock is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Shutterstock Insiders Bought Stock Recently

It’s good to see that Shutterstock insiders have made notable investments in the company’s shares. Not only was there no selling that we can see, but they collectively bought US$680k worth of shares. That shows some optimism about the company’s future.

Insider Ownership Of Shutterstock

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Shutterstock insiders own 31% of the company, currently worth about US$423m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Shutterstock Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Shutterstock. Nice! 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. While conducting our analysis, we found that Shutterstock has 1 warning sign and it would be unwise to ignore it.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.