BigCommerce Holdings, Inc.'s (NASDAQ:BIGC)) market cap declines to US$3.8b but insiders who sold US$35m stock were able to hedge their losses

By
Simply Wall St
Published
September 27, 2021
NasdaqGM:BIGC
Source: Shutterstock

Over the past year, insiders sold US$35m worth of BigCommerce Holdings, Inc. (NASDAQ:BIGC) stock at an average price of US$64.34 per share allowing them to get the most out of their money. The company's market valuation decreased by US$328m after the stock price dropped 7.9% over the past week, but insiders were spared from painful 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.

See our latest analysis for BigCommerce Holdings

The Last 12 Months Of Insider Transactions At BigCommerce Holdings

In the last twelve months, the biggest single sale by an insider was when the Chairman, Brent Bellm, sold US$11m worth of shares at a price of US$65.79 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$53.76. So it is hard to draw any strong conclusion from it.

Insiders in BigCommerce Holdings didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGM:BIGC Insider Trading Volume September 27th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that BigCommerce Holdings insiders own 17% of the company, worth about US$638m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At BigCommerce Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of BigCommerce Holdings, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BigCommerce Holdings. At Simply Wall St, we found 3 warning signs for BigCommerce Holdings that deserve your attention before buying any shares.

Of course BigCommerce 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, but not derivative transactions.

When trading BigCommerce Holdings or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.Promoted

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.