Insider buying can provide clues about a stock’s next move. Insiders sell company stock for a number of reasons. Yet they only buy stock for one reason – they expect it to rise.
In this report, we are going to highlight some interesting insider buying at Smartsheet Inc (SMAR:US). Smartsheet is a software company that offers a business collaboration platform. Headquartered in the US, it has customers in around 200 countries. The company is listed on the New York Stock Exchange and currently has a market cap of $5.2 billion.
$150K Stock Purchase
Our data shows that on June 13, Chairman of the Board Mike Gregoire purchased 3,800 shares at a price of $39.38 per share. This trade cost the insider around $150,000 and increased his holding to 15,301 shares.
Mr. Gregoire is very experienced in the technology field. Previously, he was CEO of CA Technologies. Before that, he was Chairman and CEO of Taleo Corporation, Executive Vice President at PeopleSoft, and Executive Director at Electronic Data Systems EDS.
He also has investment experience, having founded the investment firm Brighton Park Capital in January 2019. Given his background, we think his stock purchase here is notable.
Smartsheet recently produced solid Q1 results that were ahead of estimates.
For the quarter, revenue came in at $219.9 million, up 31% year on year. Meanwhile, earnings per share amounted to 18 cents – well above the consensus forecast of eight cents.
“Our fiscal year is off to a solid start,” commented President and CEO Mark Mader. “We are seeing strong demand from our enterprise customers,” he added.
The company’s share price took a hit after the results, however. This was due to the fact that its sales guidance was below forecasts.
The large purchase from Mr. Gregoire suggests that he expects the stock to bounce back.
Given his background, we think Smartsheet is a stock to keep an eye on.