Independent Director Brian Hirsch Sold A Bunch Of Shares In ACV Auctions

We wouldn't blame ACV Auctions Inc. (NASDAQ:ACVA) shareholders if they were a little worried about the fact that Brian Hirsch, the Independent Director recently netted about US$1.1m selling shares at an average price of US$18.63. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for ACV Auctions

The Last 12 Months Of Insider Transactions At ACV Auctions

Notably, that recent sale by Independent Director Brian Hirsch was not the only time they sold ACV Auctions shares this year. Earlier in the year, they fetched US$17.67 per share in a -US$2.9m sale. That means that an insider was selling shares at slightly below the current price (US$18.96). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Brian Hirsch's holding.

In the last year ACV Auctions 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. ACV Auctions insiders own about US$70m worth of shares. That equates to 2.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At ACV Auctions Tell Us?

Insiders sold ACV Auctions shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. Every company has risks, and we've spotted 2 warning signs for ACV Auctions you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.