Shareholders Can't Ignore US$1.6m Of Sales By NerdWallet Insiders
Despite the fact that NerdWallet, Inc. (NASDAQ:NRDS) stock rose 14% last week, insiders who sold US$1.6m worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$12.08, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
NerdWallet Insider Transactions Over The Last Year
The insider, Samuel Yount, made the biggest insider sale in the last 12 months. That single transaction was for US$743k worth of shares at a price of US$10.33 each. So we know that an insider sold shares at around the present share price of US$9.79. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last year NerdWallet insiders didn't buy any company stock. 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!
See our latest analysis for NerdWallet
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. NerdWallet insiders own 52% of the company, currently worth about US$303m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The NerdWallet Insider Transactions Indicate?
It doesn't really mean much that no insider has traded NerdWallet shares in the last quarter. While we feel good about high insider ownership of NerdWallet, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in NerdWallet, you should check out this free report on analyst forecasts for the company.
But note: NerdWallet 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 of direct interests only, but not derivative transactions or indirect interests.
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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.