Insiders Sold FaZe Holdings At US$1.88, Meanwhile Stock Sits Near US$0.30

FaZe Holdings Inc.'s (NASDAQ:FAZE) value has fallen 18% in the last week, but insiders who sold US$113k worth of stock over the last year have had less success. The average selling price of US$1.88 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for FaZe Holdings

The Last 12 Months Of Insider Transactions At FaZe Holdings

The insider, Tamara Brandt, made the biggest insider sale in the last 12 months. That single transaction was for US$89k worth of shares at a price of US$2.00 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$0.30. So it is hard to draw any strong conclusion from it. Tamara Brandt was the only individual insider to sell over the last year.

Tamara Brandt divested 60.00k shares over the last 12 months at an average price of US$1.88. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 FaZe Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that FaZe Holdings insiders own 19% of the company, worth about US$4.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The FaZe Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded FaZe Holdings shares in the last quarter. Our analysis of FaZe Holdings insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FaZe Holdings. For instance, we've identified 4 warning signs for FaZe Holdings (1 can't be ignored) you should be aware of.

But note: FaZe Holdings 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, but not derivative transactions.

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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.