Don't Ignore The Fact That This Insider Just Sold Some Shares In Casper Sleep Inc. (NYSE:CSPR)

By
Simply Wall St
Published
March 02, 2021
NYSE:CSPR
Source: Shutterstock

We'd be surprised if Casper Sleep Inc. (NYSE:CSPR) shareholders haven't noticed that the Co-­Founder, Philip Krim, recently sold US$196k worth of stock at US$9.47 per share. However, the silver lining is that the sale only reduced their total holding by 0.9%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Casper Sleep

The Last 12 Months Of Insider Transactions At Casper Sleep

Notably, that recent sale by Philip Krim is the biggest insider sale of Casper Sleep shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$9.06. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 30.00k shares worth US$271k. On the other hand they divested 24.59k shares, for US$233k. In total, Casper Sleep insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:CSPR Insider Trading Volume March 3rd 2021

Casper Sleep is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Casper Sleep Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 15% of Casper Sleep shares, worth about US$56m. 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 Do The Casper Sleep Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Casper Sleep you should be aware of.

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, but not derivative transactions.

When trading Casper Sleep or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.