We'd be surprised if Warby Parker Inc. (NYSE:WRBY) shareholders haven't noticed that the Independent Director, Teresa Briggs, recently sold US$228k worth of stock at US$12.05 per share. The eyebrow raising move amounted to a reduction of 38% in their holding.
View our latest analysis for Warby Parker
The Last 12 Months Of Insider Transactions At Warby Parker
In fact, the recent sale by Independent Director Teresa Briggs was not their only sale of Warby Parker shares this year. They previously made an even bigger sale of -US$580k worth of shares at a price of US$30.01 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$11.04. So it may not shed much light on insider confidence at current levels.
Teresa Briggs sold a total of 38.23k shares over the year at an average price of US$21.13. 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!
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 Warby Parker 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. Warby Parker insiders own 20% of the company, currently worth about US$262m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Warby Parker Insider Transactions Indicate?
An insider sold Warby Parker shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Warby Parker. At Simply Wall St, we found 2 warning signs for Warby Parker that deserve your attention before buying any shares.
But note: Warby Parker 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.