Brilliant Earth Group Falls To US$1.42, But Insiders Sold At Lower Price

Brilliant Earth Group, Inc.'s (NASDAQ:BRLT) stock price has dropped 14% in the previous week, but insiders who sold US$76k in stock over the past year have had less luck. Given that the average selling price of US$2.52 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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 Brilliant Earth Group

The Last 12 Months Of Insider Transactions At Brilliant Earth Group

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Ian Bickley, sold US$76k worth of shares at a price of US$2.52 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$1.42. So it may not tell us anything about how insiders feel about the current share price. Ian Bickley was the only individual insider to sell shares in the last twelve months.

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 Brilliant Earth Group 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Brilliant Earth Group insiders have about 0.8% of the stock, worth approximately US$1.3m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Brilliant Earth Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at Brilliant Earth Group are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. To that end, you should learn about the 2 warning signs we've spotted with Brilliant Earth Group (including 1 which is concerning).

Of course Brilliant Earth Group 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.

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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.