Stock Analysis

Have Insiders Sold Squarespace, Inc. (NYSE:SQSP) Shares Recently?

Source: Shutterstock

Some Squarespace, Inc. (NYSE:SQSP) shareholders may be a little concerned to see that the Independent Director, Jonathan Klein, recently sold a substantial US$1.5m worth of stock at a price of US$27.28 per share. However, that sale only accounted for 7.2% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Squarespace

Squarespace Insider Transactions Over The Last Year

Notably, that recent sale by Jonathan Klein is the biggest insider sale of Squarespace shares that we've seen in the last year. That means that even when the share price was below the current price of US$27.92, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 7.2% of Jonathan Klein's stake.

Jonathan Klein sold a total of 82.20k shares over the year at an average price of US$27.18. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:SQSP Insider Trading Volume March 18th 2023

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 Squarespace 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. Squarespace insiders own about US$1.4b worth of shares (which is 36% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Squarespace Insider Transactions Indicate?

An insider hasn't bought Squarespace stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. Be aware that Squarespace is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: Squarespace 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.

Valuation is complex, but we're helping make it simple.

Find out whether Squarespace is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis