Zevia PBC Insider Sellers Vindicated After 37% Drop

Insiders seem to have made the most of their holdings by selling US$193k worth of Zevia PBC (NYSE:ZVIA) stock at an average sell price of US$1.55 during the past year. After the stock price dropped 37% last week, the company's market value declined by US$81m, but insiders were able to mitigate their losses.

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.

View our latest analysis for Zevia PBC

Zevia PBC Insider Transactions Over The Last Year

The CEO, President & Director, Amy Taylor, made the biggest insider sale in the last 12 months. That single transaction was for US$54k worth of shares at a price of US$4.74 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.29. So it is hard to draw any strong conclusion from it. Notably Amy Taylor was also the biggest buyer, having purchased US$99k worth of shares.

Happily, we note that in the last year insiders paid US$99k for 103.26k shares. On the other hand they divested 124.52k shares, for US$193k. Over the last year we saw more insider selling of Zevia PBC shares, than buying. 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!

I will like Zevia PBC 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.

Insiders At Zevia PBC Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Zevia PBC. Specifically, insiders ditched US$73k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Zevia PBC 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. From our data, it seems that Zevia PBC insiders own 2.5% of the company, worth about US$6.0m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Zevia PBC Insiders?

Insiders haven't bought Zevia PBC stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Zevia PBC has 3 warning signs and it would be unwise to ignore them.

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.

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

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.