We wouldn't blame Xometry, Inc. (NASDAQ:XMTR) shareholders if they were a little worried about the fact that Fabio Rosati, the Lead Independent Director recently netted about US$911k selling shares at an average price of US$91.12. However, that sale only accounted for 7.2% of their holding, so arguably it doesn't say much about their conviction.

Xometry Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Randolph Altschuler, for US$4.4m worth of shares, at about US$91.60 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$93.09. 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. We note that the biggest single sale was only 2.2% of Randolph Altschuler's holding.

Happily, we note that in the last year insiders paid US$4.0m for 48.27k shares. But insiders sold 121.58k shares worth US$8.0m. In total, Xometry insiders sold more than they bought over the last year. 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!

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Insider Ownership Of Xometry

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Xometry insiders own 7.3% of the company, currently worth about US$383m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Xometry Insiders?

The stark truth for Xometry is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

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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.

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.