While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Etsy
The Chief Technology Officer, Michael Fisher, made the biggest insider sale in the last 12 months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below.
There haven't been any insider transactions in the last three months -- that doesn't mean much.
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 Etsy, Inc. (NASDAQ:ETSY) insiders, selling US$6.7m worth of stock earlier this year was a smart move. - Nasdaq
Last week, Etsy, Inc.'s (NASDAQ:ETSY) stock jumped 11%, but insiders who sold US$6.7m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$261, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Etsy
The Chief Technology Officer, Michael Fisher, made the biggest insider sale in the last 12 months. That single transaction was for US$4.9m worth of shares at a price of US$265 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$121. So it may not tell us anything about how insiders feel about the current share price.
Etsy insiders didn't buy any shares over the last year. 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! NasdaqGS:ETSY Insider Trading Volume August 17th 2022
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Etsy
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Etsy insiders own about US$108m worth of shares (which is 0.7% of the company). 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 Does This Data Suggest About Etsy Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Etsy insiders 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 - Etsy has 1 warning sign we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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