Advantage Solutions Insiders Added US$2.17m Of Stock To Their Holdings


Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Advantage Solutions Inc. (NASDAQ:ADV), it sends a favourable 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.

Check out our latest analysis for Advantage Solutions

The Last 12 Months Of Insider Transactions At Advantage Solutions

Over the last year, we can see that the biggest insider purchase was by Independent Director Brian Ratzan for US$439k worth of shares, at about US$2.09 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.25. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

While Advantage Solutions insiders bought shares during the last year, they didn’t sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:ADV Insider Trading Volume March 18th 2024

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Advantage Solutions Insiders Bought Stock Recently

Over the last quarter, Advantage Solutions insiders have spent a meaningful amount on shares. In total, insiders bought US$128k worth of shares in that time, and we didn’t record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership Of Advantage Solutions

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Advantage Solutions insiders own about US$20m worth of shares. That equates to 1.5% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Advantage Solutions Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Advantage Solutions shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Advantage Solutions, you should check out this free report on analyst forecasts for the company.

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.

Valuation is complex, but we’re helping make it simple.

Find out whether Advantage Solutions is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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