This Insider Has Just Sold Shares In Torrid Holdings

We wouldn't blame Torrid Holdings Inc. (NYSE:CURV) shareholders if they were a little worried about the fact that Lisa Harper, the CEO & Director recently netted about US$1.9m selling shares at an average price of US$3.80. However, that sale only accounted for 8.5% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Torrid Holdings

Torrid Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Lisa Harper was the biggest sale of Torrid Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$4.01). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 8.5% of Lisa Harper's stake.

All up, insiders sold more shares in Torrid Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Torrid Holdings insiders own about US$40m worth of shares. That equates to 9.6% 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.

What Might The Insider Transactions At Torrid Holdings Tell Us?

Insiders sold Torrid Holdings shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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 Torrid Holdings. For instance, we've identified 5 warning signs for Torrid Holdings (2 are a bit concerning) you should be aware of.

Of course Torrid Holdings 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.