Have Blend Labs Insiders Been Selling Stock?

We wouldn't blame Blend Labs, Inc. (NYSE:BLND) shareholders if they were a little worried about the fact that Nima Ghamsari, the Co-Founder recently netted about US$904k selling shares at an average price of US$2.90. However, that sale only accounted for 5.1% of their holding, so arguably it doesn't say much about their conviction.

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Blend Labs Insider Transactions Over The Last Year

Notably, that recent sale by Nima Ghamsari is the biggest insider sale of Blend Labs shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$3.01. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 5.1% of Nima Ghamsari's stake.

Nima Ghamsari divested 431.74k shares over the last 12 months at an average price of US$3.03. 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!

View our latest analysis for Blend Labs

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

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. We usually like to see fairly high levels of insider ownership. It appears that Blend Labs insiders own 5.7% of the company, worth about US$45m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Blend Labs Insider Transactions Indicate?

An insider sold Blend Labs shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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 Blend Labs. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Blend Labs.

Of course Blend Labs 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.