Stock Analysis

With Warby Parker Inc.'s (NYSE:WRBY)) price down 4.9% this week, insiders might find some solace having sold US$580k worth of shares earlier this year.

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NYSE:WRBY
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Over the past year, insiders sold US$580k worth of Warby Parker Inc. (NYSE:WRBY) stock at an average price of US$30.01 per share allowing them to get the most out of their money. After the stock price dropped 4.9% last week, the company's market value declined by US$97m, but insiders were able to mitigate their losses.

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 the opportunities and risks within the US Specialty Retail industry.

The Last 12 Months Of Insider Transactions At Warby Parker

Over the last year, we can see that the biggest insider sale was by the Independent Director, Teresa Briggs, for US$580k worth of shares, at about US$30.01 per share. 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$16.19. So it may not tell us anything about how insiders feel about the current share price. Teresa Briggs was the only individual insider to sell shares in the last twelve months.

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!

insider-trading-volume
NYSE:WRBY Insider Trading Volume December 8th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Warby Parker 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Warby Parker insiders own about US$352m worth of shares (which is 19% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Warby Parker Insiders?

It doesn't really mean much that no insider has traded Warby Parker shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Warby Parker insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Warby Parker. At Simply Wall St, we found 2 warning signs for Warby Parker that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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