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Don't Ignore The Fact That This Insider Just Sold Some Shares In 1stdibs.Com, Inc. (NASDAQ:DIBS)

Simply Wall St ·  Sep 16, 2022 06:31

Investors may wish to note that the Chief Technology Officer of 1stdibs.Com, Inc., Ross Paul, recently netted US$51k from selling stock, receiving an average price of US$5.95. However we note that the sale only shrunk their holding by 5.7%.

See our latest analysis for 1stdibs.Com

The Last 12 Months Of Insider Transactions At 1stdibs.Com

The Chairperson & CEO David Rosenblatt made the biggest insider purchase in the last 12 months. That single transaction was for US$301k worth of shares at a price of US$13.37 each. That means that an insider was happy to buy shares at above the current price of US$7.23. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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. David Rosenblatt was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volumeNasdaqGM:DIBS Insider Trading Volume September 16th 2022

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.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.9% of 1stdibs.Com shares, worth about US$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About 1stdibs.Com Insiders?

Insiders haven't bought 1stdibs.Com stock in the last three months, but there was some selling. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, 1stdibs.Com has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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