Trade Alert: The Independent Non-Executive Director Of Sezzle Inc. (ASX:SZL), Paul Lahiff, Has Sold Some Shares Recently

We'd be surprised if Sezzle Inc. (ASX:SZL) shareholders haven't noticed that the Independent Non-Executive Director, Paul Lahiff, recently sold AU$412k worth of stock at AU$9.67 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Sezzle

The Last 12 Months Of Insider Transactions At Sezzle

Notably, that recent sale by Paul Lahiff is the biggest insider sale of Sezzle shares that we've seen in the last year. That means that an insider was selling shares at around the current price of AU$8.64. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Paul Lahiff divested 87.63k shares over the last 12 months at an average price of US$8.99. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Sezzle Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Sezzle insiders own 55% of the company, worth about AU$936m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Sezzle Insider Transactions Indicate?

An insider sold Sezzle shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 3 warning signs for Sezzle that deserve your attention before buying any shares.

Of course Sezzle 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.

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This article by Simply Wall St is general in nature. 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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