- United States
Independent Director Daniel Levitan Just Bought 249% More Shares In Allbirds, Inc. (NASDAQ:BIRD)
Whilst it may not be a huge deal, we thought it was good to see that the Allbirds, Inc. (NASDAQ:BIRD) Independent Director, Daniel Levitan, recently bought US$82k worth of stock, for US$1.08 per share. Even though that isn't a massive buy, it did increase their holding by 249%, which is arguably a good sign.
View our latest analysis for Allbirds
The Last 12 Months Of Insider Transactions At Allbirds
The Co-Founder Timothy Brown made the biggest insider purchase in the last 12 months. That single transaction was for US$243k worth of shares at a price of US$4.86 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.08). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$325k for 125.80k shares. But they sold 51.12k shares for US$162k. In total, Allbirds insiders bought more than they sold over the last year. The average buy price was around US$2.58. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Does Allbirds 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.7% of Allbirds shares, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Allbirds Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Allbirds and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Allbirds. To help with this, we've discovered 2 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Allbirds.
But note: Allbirds 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, 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.
Allbirds, Inc. manufactures and sells footwear and apparel products for men and women in the United States and internationally.
Flawless balance sheet and slightly overvalued.