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Bullish insiders at EverQuote, Inc. (NASDAQ:EVER) loaded up on US$23m of stock earlier this year

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Over the last year, a good number of insiders have significantly increased their holdings in EverQuote, Inc. (NASDAQ:EVER). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for EverQuote

EverQuote Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Chairman David Blundin bought US$15m worth of shares at a price of US$14.94 per share. That means that an insider was happy to buy shares at above the current price of US$10.45. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 1.55m shares worth US$23m. But insiders sold 13.88k shares worth US$165k. In the last twelve months there was more buying than selling by EverQuote insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

EverQuote is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At EverQuote Have Sold Stock Recently

The last three months saw significant insider selling at EverQuote. Specifically, insiders ditched US$51k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that EverQuote insiders own 13% of the company, worth about US$44m. 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 EverQuote Insider Transactions Indicate?

Insiders haven't bought EverQuote stock in the last three months, but there was some selling. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're not overly bothered by recent 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. While conducting our analysis, we found that EverQuote has 3 warning signs and it would be unwise to ignore these.

Of course EverQuote may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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