Chief People Officer Of RealReal Sold 32% Of Their Shares

Explore RealReal's Fair Values from the Community and select yours

Anyone interested in The RealReal, Inc. (NASDAQ:REAL) should probably be aware that the Chief People Officer, Chatelle Lynch, recently divested US$384k worth of shares in the company, at an average price of US$7.46 each. That sale was 32% of their holding, so it does make us raise an eyebrow.

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RealReal Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, John Koryl, for US$3.8m worth of shares, at about US$9.87 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$7.73. So it is hard to draw any strong conclusion from it.

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

View our latest analysis for RealReal

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Does RealReal Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 9.2% of RealReal shares, worth about US$82m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At RealReal Tell Us?

An insider hasn't bought RealReal stock in the last three months, but there was some selling. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RealReal. To help with this, we've discovered 2 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in RealReal.

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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.