Potential Solo Brands, Inc. (NYSE:DTC) shareholders may wish to note that the President, Christopher Metz, recently bought US$325k worth of stock, paying US$1.30 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 100%.

The Last 12 Months Of Insider Transactions At Solo Brands

In the last twelve months, the biggest single sale by an insider was when the insider, Somer Webb, sold US$471k worth of shares at a price of US$4.35 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$1.33). So it may not shed much light on insider confidence at current levels. Somer Webb was the only individual insider to sell over the last year.

Christopher Metz purchased 500.00k shares over the year. The average price per share was US$1.69. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Solo Brands insiders own 1.0% of the company, worth about US$1.2m. I generally like to see higher levels of ownership.

So What Do The Solo Brands Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Solo Brands insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Solo Brands. When we did our research, we found 2 warning signs for Solo Brands (1 shouldn't be ignored!) that we believe deserve your full attention.

But note: Solo Brands 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 of direct interests only, but not derivative transactions or indirect interests.

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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.