ThredUp Director Acquires 186% More Stock

Investors who take an interest in ThredUp Inc. (NASDAQ:TDUP) should definitely note that the Director, Noam Paransky, recently paid US$0.81 per share to buy US$146k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 186%, potentially signalling some real optimism.

Check out our latest analysis for ThredUp

The Last 12 Months Of Insider Transactions At ThredUp

Notably, that recent purchase by Noam Paransky is the biggest insider purchase of ThredUp shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$0.75. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid US$246k for 300.00k shares. But they sold 32.82k shares for US$62k. In the last twelve months there was more buying than selling by ThredUp insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of ThredUp

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. From our data, it seems that ThredUp insiders own 8.9% of the company, worth about US$7.5m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At ThredUp Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on ThredUp stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ThredUp. Our analysis shows 4 warning signs for ThredUp (1 is potentially serious!) and we strongly recommend you look at these before investing.

Of course ThredUp 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.