Bakkt Holdings Insider Stock Sellers Must Be Relieved As Market Cap Falls To US$113m

Insiders seem to have made the most of their holdings by selling US$409k worth of Bakkt Holdings, Inc. (NYSE:BKKT) stock at an average sell price of US$1.78 during the past year. The company’s market cap plunged by US$17m after price dropped by 33% last week but insiders were able to limit their loss to an extent.

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.

Check out our latest analysis for Bakkt Holdings

The Last 12 Months Of Insider Transactions At Bakkt Holdings

The Independent Chairman, Sean Collins, made the biggest insider sale in the last 12 months. That single transaction was for US$409k worth of shares at a price of US$1.80 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$6.71. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 96% of Sean Collins's holding. The only individual insider seller over the last year was Sean Collins.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Bakkt Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Bakkt Holdings insiders have about 0.9% of the stock, worth approximately US$1.0m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Bakkt Holdings Insiders?

The fact that there have been no Bakkt Holdings insider transactions recently certainly doesn't bother us. The insider transactions at Bakkt Holdings are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (2 don't sit too well with us!) that you ought to be aware of before buying any shares in Bakkt Holdings.

Of course Bakkt Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.