Daniel Nova Bought 13% More Shares In ThredUp

Those following along with ThredUp Inc. (NASDAQ:TDUP) will no doubt be intrigued by the recent purchase of shares by Daniel Nova, Independent Director of the company, who spent a stonking US$522k on stock at an average price of US$8.04. Not only is that a big swing, but it increased their holding size by 13%, which is definitely great to see.

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ThredUp Insider Transactions Over The Last Year

The Co-Founder, James Reinhart, made the biggest insider sale in the last 12 months. That single transaction was for US$5.6m worth of shares at a price of US$10.20 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$7.91. So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 425.74k shares worth US$996k. On the other hand they divested 1.10m shares, for US$10m. Over the last year we saw more insider selling of ThredUp shares, than buying. The average sell price was around US$9.14. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$7.91). 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!

View our latest analysis for ThredUp

I will like ThredUp 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 ThredUp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. ThredUp insiders own about US$92m worth of shares. That equates to 9.3% of the company. 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 ThredUp Tell Us?

Unfortunately, there has been more insider selling of ThredUp stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. For example - ThredUp has 1 warning sign we think you should be aware of.

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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.