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Insiders who bought Allbirds, Inc. (NASDAQ:BIRD) stock in the last 12 months were richly rewarded last week. The company’s market value increased by US$76m as a result of the stock’s 10% gain over the same period. As a result, the stock they originally bought for US$372k is now worth US$415k.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Allbirds
Allbirds Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Founder Timothy Brown for US$243k worth of shares, at about US$4.86 per share. We do like to see buying, but this purchase was made at well below the current price of US$5.53. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
In the last twelve months Allbirds insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Allbirds is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Allbirds Insiders Bought Stock Recently
It’s good to see that Allbirds insiders have made notable investments in the company’s shares. We can see that Co-Founder Timothy Brown paid US$243k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Does Allbirds Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Allbirds insiders own 18% of the company, currently worth about US$148m based on the recent share price. 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 Does This Data Suggest About Allbirds Insiders?
The recent insider purchase is heartening. 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. When combined with notable insider ownership, these factors suggest Allbirds insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. You’d be interested to know, that we found 1 warning sign for Allbirds and we suggest you have a look.
But note: Allbirds 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.
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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.
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