Don't Ignore The Insider Selling In eXp World Holdings

Some eXp World Holdings, Inc. (NASDAQ:EXPI) shareholders may be a little concerned to see that the Founder, Glenn Sanford, recently sold a substantial US$1.1m worth of stock at a price of US$12.80 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.2%.

See our latest analysis for eXp World Holdings

The Last 12 Months Of Insider Transactions At eXp World Holdings

Notably, that recent sale by Glenn Sanford is the biggest insider sale of eXp World Holdings shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$14.05). 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 only 0.2% of Glenn Sanford's holding.

In the last year eXp World Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like eXp World Holdings 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.

Does eXp World Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. eXp World Holdings insiders own 49% of the company, currently worth about US$984m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About eXp World Holdings Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. While conducting our analysis, we found that eXp World Holdings has 1 warning sign and it would be unwise to ignore this.

But note: eXp World 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 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.

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