Over the past year, insiders sold US$55m worth of Squarespace, Inc. (NYSE:SQSP) stock at an average price of US$53.45 per share allowing them to get the most out of their money. The company's market worth decreased by US$367m over the past week after the stock price dropped 5.9%, although insiders were able to minimize their losses
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Squarespace
In the last twelve months, the biggest single sale by an insider was when the Founder, Anthony Casalena, sold US$22m worth of shares at a price of US$53.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$42.35. So it may not tell us anything about how insiders feel about the current share price.
In the last year Squarespace insiders didn't buy any company stock. 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!
I will like Squarespace better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Squarespace Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Squarespace. In total, insiders dumped US$55m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership of Squarespace
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Squarespace insiders own about US$2.1b 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 Does This Data Suggest About Squarespace Insiders?
Insiders haven't bought Squarespace stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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 3 warning signs in our investment analysis, and 1 of those is concerning...
Of course Squarespace 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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In This StorySQSP
Latest Companies Videos
- Some Alibaba Group Holding Limited (NYSE:BABA) Shareholders Look For Exit As Shares Take 28% Pounding
- Quite a few insiders invested in United Parcel Service, Inc. (NYSE:UPS) last year which is positive news for shareholders
- Does AT&T (NYSE:T) Have A Healthy Balance Sheet?
- Daqo New Energy Corp.'s (NYSE:DQ) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?