Insider Sellers Might Regret Selling ACV Auctions Shares at a Lower Price Than Current Market Value

ACV Auctions Inc.'s (NYSE:ACVA) stock price has dropped 12% in the previous week, but insiders who sold US$6.7m in stock over the past year have had less luck. Given that the average selling price of US$19.33 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

ACV Auctions Insider Transactions Over The Last Year

The Independent Director, Brian Hirsch, made the biggest insider sale in the last 12 months. That single transaction was for US$3.0m worth of shares at a price of US$20.69 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$14.13. So it may not tell us anything about how insiders feel about the current share price.

In the last year ACV Auctions insiders didn't buy any company stock. 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!

See our latest analysis for ACV Auctions

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does ACV Auctions Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.1% of ACV Auctions shares, worth about US$51m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About ACV Auctions Insiders?

It doesn't really mean much that no insider has traded ACV Auctions shares in the last quarter. Our analysis of ACV Auctions insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. Of course, the future is what matters most. So if you are interested in ACV Auctions, you should check out this free report on analyst forecasts for the company.

But note: ACV Auctions 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.