Investors who take an interest in 1stdibs.Com, Inc.( NASDAQ:DIBS ) should definitely note that the Chairperson & CEO, David Rosenblatt, recently paid US$4.51 per share to buy US$214k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.7%.
The Last 12 Months Of Insider Transactions At 1stdibs.Com
In fact, the recent purchase by David Rosenblatt was the biggest purchase of 1stdibs.Com shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$4.47. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. David Rosenblatt was the only individual insider to buy during 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!
View our latest analysis for 1stdibs.Com
1stdibs.Com is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 11% of 1stdibs.Com shares, worth about US$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At 1stdibs.Com Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in 1stdibs.Com shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 1stdibs.Com. For example - 1stdibs.Com has 1 warning sign we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere.So take a peek at this free list of interesting 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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