Have Insiders Sold Eventbrite Shares Recently?

We'd be surprised if Eventbrite, Inc. (NYSE:EB) shareholders haven't noticed that an insider, Vivek Sagi, recently sold US$444k worth of stock at US$2.34 per share. In particular, we note that the sale equated to a 99% reduction in their position size, which doesn't exactly instill confidence.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Eventbrite Insider Transactions Over The Last Year

Notably, that recent sale by Vivek Sagi is the biggest insider sale of Eventbrite shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$2.35, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 99% of Vivek Sagi's holding.

Insiders in Eventbrite didn't buy any shares in the last year. 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!

View our latest analysis for Eventbrite

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).

Does Eventbrite Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Eventbrite insiders own 5.6% of the company, worth about US$13m. 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 Eventbrite Insider Transactions Indicate?

An insider hasn't bought Eventbrite stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Eventbrite has 2 warning signs and it would be unwise to ignore them.

Of course Eventbrite 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.

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.