Stock Analysis

Insiders who purchased this year lose US$283k as Boxed, Inc. (NYSE:BOXD) stock drops to US$0.22

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Insiders who bought US$322k worth of Boxed, Inc.'s (NYSE:BOXD) stock at an average buy price of US$1.79 over the last year may be disappointed by the recent 36% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$40k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Boxed

The Last 12 Months Of Insider Transactions At Boxed

Over the last year, we can see that the biggest insider purchase was by Independent Director Andrew Pearson for US$272k worth of shares, at about US$2.37 per share. That means that an insider was happy to buy shares at above the current price of US$0.22. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Boxed insiders were buying shares, but not selling. Their average price was about US$1.79. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:BOXD Insider Trading Volume March 16th 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Boxed Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Boxed insiders own 9.5% of the company, worth about US$1.5m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Boxed Insider Transactions Indicate?

The fact that there have been no Boxed insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Boxed insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Boxed has 6 warning signs (3 are potentially serious!) that deserve your attention before going any further with your analysis.

But note: Boxed may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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