Insiders Sold US$567k Of Zevia PBC Stock Possibly Sending Warning Sign

Even though Zevia PBC (NYSE:ZVIA) stock gained 16% last week, insiders who sold US$567k worth of stock over the past year are probably better off. Selling at an average price of US$1.75, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

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.

Check out our latest analysis for Zevia PBC

Zevia PBC Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman of the Board of Directors, Padraic Spence, sold US$83k worth of shares at a price of US$2.56 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$0.91). So it is hard to draw any strong conclusion from it.

In total, Zevia PBC insiders sold more than they bought over the last year. They sold for an average price of about US$1.75. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of US$0.91. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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: Most of them are flying under the radar).

Insiders At Zevia PBC Have Bought Stock Recently

We saw some Zevia PBC insider buying shares in the last three months. CEO, President & Director Amy Taylor bought US$49k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of Zevia PBC

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. From looking at our data, insiders own US$1.4m worth of Zevia PBC stock, about 2.2% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Zevia PBC Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. We don't take much encouragement from the transactions by Zevia PBC insiders. And we're not picking up on high enough insider ownership to give us any comfort. 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. For example, Zevia PBC has 5 warning signs (and 1 which can't be ignored) we think you should know about.

But note: Zevia PBC 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.

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