Yahoo Finance Hopeful week for insiders who might be regretting buying US$1.4m of Solo Brands, Inc. (NYSE:DTC) stock earlier this year
Insiders who bought US$1.4m worth of Solo Brands, Inc. (NYSE:DTC) stock in the last year have seen some of their losses recouped as the stock gained 24% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$218k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Solo Brands
Solo Brands Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President John Merris for US$440k worth of shares, at about US$4.95 per share. Even though the purchase was made at a significantly lower price than the recent price (US$5.91), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Solo Brands insiders bought shares during the last year, they didn't sell. They paid about US$6.98 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insiders At Solo Brands Have Bought Stock Recently
It's good to see that Solo Brands insiders have made notable investments in the company's shares. In total, insiders bought US$733k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Solo Brands Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Solo Brands insiders have about 0.2% of the stock, worth approximately US$1.1m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Solo Brands Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Solo Brands stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Solo Brands has 1 warning sign and it would be unwise to ignore it.
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.
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