Even though ThredUp Inc. (NASDAQ:TDUP) stock gained 15% last week, insiders who sold US$11m worth of stock over the past year are probably better off. Selling at an average price of US$9.42, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

ThredUp Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, James Reinhart, for US$5.6m worth of shares, at about US$10.20 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$6.93. So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 78.16k shares worth US$571k. But insiders sold 1.20m shares worth US$11m. Over the last year we saw more insider selling of ThredUp shares, than buying. 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!

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Does ThredUp Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. ThredUp insiders own about US$82m worth of shares. That equates to 9.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The ThredUp Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by ThredUp insiders. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most.

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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.