This Insider Has Just Sold Shares In 374Water

We wouldn't blame 374Water Inc. (NASDAQ:SCWO) shareholders if they were a little worried about the fact that Yaacov Nagar, a company insider, recently netted about US$696k selling shares at an average price of US$0.46. However, that sale only accounted for 4.2% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At 374Water

Notably, that recent sale by Yaacov Nagar is the biggest insider sale of 374Water shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$0.68). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 4.2% of Yaacov Nagar's holding.

Over the last year, we can see that insiders have bought 964.69k shares worth US$774k. But insiders sold 3.45m shares worth US$2.2m. Yaacov Nagar ditched 3.45m shares over the year. The average price per share was US$0.65. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for 374Water

I will like 374Water better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does 374Water Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. 374Water insiders own 46% of the company, currently worth about US$48m based on the recent share price. 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 Does This Data Suggest About 374Water Insiders?

The insider sales have outweighed the insider buying, at 374Water, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. Be aware that 374Water is showing 5 warning signs in our investment analysis, and 3 of those are concerning...

But note: 374Water 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.