Insiders Could Have Profited By Holding onto Beachbody Company Shares Despite 13% Drop

Despite the fact that The Beachbody Company, Inc.'s (NYSE:BODI) value has dropped 13% in the last week insiders who sold US$915k worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$9.74 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Beachbody Company

Beachbody Company Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Jonathan Congdon, for US$462k worth of shares, at about US$10.75 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$6.88. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Jonathan Congdon.

Jonathan Congdon sold a total of 93.97k shares over the year at an average price of US$9.74. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Beachbody Company 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 Beachbody Company 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. Beachbody Company insiders own 44% of the company, currently worth about US$20m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Beachbody Company Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Beachbody Company insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Beachbody Company. For example - Beachbody Company has 3 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.