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The Co-founder of NerdWallet, Inc. (NASDAQ:NRDS), Tim Chen, Just Bought 33% More Shares

Potential NerdWallet, Inc. (NASDAQ:NRDS) shareholders may wish to note that the Co-founder, Tim Chen, recently bought US$386k worth of stock, paying US$9.66 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 33%.

See our latest analysis for NerdWallet

NerdWallet Insider Transactions Over The Last Year

Notably, that recent purchase by Co-founder Tim Chen was not the only time they bought NerdWallet shares this year. They previously made an even bigger purchase of US$599k worth of shares at a price of US$9.80 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$10.93. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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Tim Chen purchased 160.00k shares over the year. The average price per share was US$10.01. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

NerdWallet is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. NerdWallet insiders own about US$354m worth of shares (which is 44% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At NerdWallet Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about NerdWallet. Nice! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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