Yahoo Finance Quite a few insiders invested in Boxed, Inc. (NYSE:BOXD) last year which is positive news for shareholders
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Boxed, Inc. (NYSE:BOXD), it sends a favourable message to the company's shareholders.
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.
View our latest analysis for Boxed
The Last 12 Months Of Insider Transactions At Boxed
Over the last year, we can see that the biggest insider purchase was by Independent Director Andrew Pearson for US$272k worth of shares, at about US$2.37 per share. That means that an insider was happy to buy shares at above the current price of US$0.54. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Boxed insiders were buying shares, but not selling. Their average price was about US$1.79. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Boxed is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Boxed
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Boxed insiders own about US$3.6m worth of shares (which is 9.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Boxed Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Boxed insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Boxed. When we did our research, we found 6 warning signs for Boxed (3 are significant!) that we believe deserve your full attention.
Of course Boxed may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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