Read This Before Selling Greenlane Holdings, Inc. (NASDAQ:GNLN) Shares

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Greenlane Holdings, Inc. (NASDAQ:GNLN).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Greenlane Holdings

Greenlane Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman of the Board & CEO Aaron LoCascio for US$185k worth of shares, at about US$3.30 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.41). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Aaron LoCascio was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders at Greenlane Holdings Have Sold Stock Recently

The last three months saw significant insider selling at Greenlane Holdings. In total, President Adam Schoenfeld dumped US$118k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our information indicates that Greenlane Holdings insiders own about US$706k worth of shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Greenlane Holdings Insiders?

An insider sold Greenlane Holdings shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. But insiders own relatively little of the company, from what we can see. So we can't be sure that insiders are optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Greenlane Holdings. You'd be interested to know, that we found 4 warning signs for Greenlane Holdings and we suggest you have a look.

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.

This article by Simply Wall St is general in nature. 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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