Insiders were net buyers of Allbirds, Inc.'s (NASDAQ:BIRD ) stock during the past year. That is, insiders bought more stock than they sold.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Allbirds
Over the last year, we can see that the biggest insider purchase was by Independent Director Daniel Levitan for US$82k worth of shares, at about US$1.08 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.29. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Daniel Levitan purchased 100.00k shares over the year. The average price per share was US$1.11. 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!
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).
Are Allbirds Insiders Buying Or Selling?
Over the last three months, we've seen a bit of insider selling at Allbirds. Chief Operating Officer Joe Vernachio only netted US$6.6k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.
Does Allbirds Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Allbirds insiders own about US$17m worth of shares. That equates to 8.8% 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.
What Might The Insider Transactions At Allbirds Tell Us?
Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Allbirds insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Allbirds.
But note: Allbirds may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.