BTCS Inc.'s (NASDAQ:BTCS) value has fallen 10% in the last week, but insiders who sold US$1.3m 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$1.60 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

BTCS Insider Transactions Over The Last Year

Notably, that recent sale by Chairman & CEO Charles Allen was not the only time they sold BTCS shares this year. Earlier in the year, they fetched US$1.27 per share in a -US$496k sale. 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$1.07. So it may not tell us anything about how insiders feel about the current share price.

Over the last year we saw more insider selling of BTCS shares, than buying. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At BTCS Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at BTCS. Specifically, insiders ditched US$812k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 22% of BTCS shares, worth about US$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At BTCS Tell Us?

Insiders haven't bought BTCS stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, BTCS has 6 warning signs (and 3 which make us uncomfortable) we think you should know about.

But note: BTCS may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.