Stock Analysis

1stdibs.Com Chief Financial Officer Thomas Etergino Sells 38% Of Holding \

NasdaqGM:DIBS
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We'd be surprised if 1stdibs.Com, Inc. (NASDAQ:DIBS) shareholders haven't noticed that the Chief Financial Officer, Thomas Etergino, recently sold US$118k worth of stock at US$3.88 per share. That sale was 38% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for 1stdibs.Com

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The Last 12 Months Of Insider Transactions At 1stdibs.Com

Notably, that recent sale by Thomas Etergino is the biggest insider sale of 1stdibs.Com shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$3.60. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

1stdibs.Com insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGM:DIBS Insider Trading Volume June 16th 2023

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 1stdibs.Com

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. 1stdibs.Com insiders own about US$11m worth of shares. That equates to 7.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The 1stdibs.Com Insider Transactions Indicate?

Insiders sold 1stdibs.Com shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. For instance, we've identified 4 warning signs for 1stdibs.Com (1 is potentially serious) you should be aware of.

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, 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.