BARK, Inc.'s (NYSE:BARK) value has fallen 12% in the last week, but insiders who sold US$916k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$1.96 is still lower than the current share price.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
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Over the last year, we can see that the biggest insider sale was by the Co-Founder, Carly Strife, for US$605k worth of shares, at about US$2.19 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$0.92. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 223.38k shares for US$256k. But they sold 467.33k shares for US$916k. All up, insiders sold more shares in BARK than they bought, over the last year. They sold for an average price of about US$1.96. Insider selling doesn't make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is US$0.92). 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!
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Over the last three months, we've seen significant insider buying at BARK. Not only was there no selling that we can see, but they collectively bought US$204k worth of shares. That shows some optimism about the company's future.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 20% of BARK shares, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in BARK, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. 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. At Simply Wall St, we found 2 warning signs for BARK that deserve your attention before buying any shares.
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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.
Discover if BARK might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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