While Rent the Runway, Inc. (NASDAQ:RENT) shareholders have had a good week with the stock up 10%, insiders can’t say the same having sold stock over the past year. Had they waited, they might have been able to sell their stock at much higher prices and thereby received a better value on their investment.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Rent the Runway Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Scarlett O’Sullivan, sold US$197k worth of shares at a price of US$2.89 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$0.59. So it may not shed much light on insider confidence at current levels.
Insiders in Rent the Runway didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Have Rent the Runway Insiders Traded Recently?
In the last three months, Senior Vice President of Engineering Becky Case sold US$2.9k worth of shares. That’s not much at all. The net selling is so small that it’s hard to draw any conclusions from these recent transactions.
Insider Ownership Of Rent the Runway
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 9.2% of Rent the Runway shares, worth about US$3.7m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Rent the Runway Insiders?
We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. Recent insider selling makes us a little nervous, in light of the broader picture of Rent the Runway insider transactions. And we’re not picking up on high enough insider ownership to give us any comfort. 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. Every company has risks, and we’ve spotted 5 warning signs for Rent the Runway (of which 1 is a bit concerning!) you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.