We wouldn't blame ACV Auctions Inc. (NASDAQ:ACVA) shareholders if they were a little worried about the fact that Brian Hirsch, the Independent Director recently netted about US$1.3m selling shares at an average price of US$18.26. Probably the most concerning element of the whole transaction is that the disposal amounted to 76% of their entire holding.
ACV Auctions Insider Transactions Over The Last Year
In fact, the recent sale by Independent Director Brian Hirsch was not their only sale of ACV Auctions shares this year. They previously made an even bigger sale of -US$2.9m worth of shares at a price of US$17.67 per share. That means that an insider was selling shares at slightly below the current price (US$18.24). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 100% of Brian Hirsch's stake.
In the last year ACV Auctions insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of ACV Auctions
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that ACV Auctions insiders own 2.7% of the company, worth about US$82m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At ACV Auctions Tell Us?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ACV Auctions. For example - ACV Auctions has 2 warning signs we think you should be aware of.
But note: ACV Auctions 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com