Some Newegg Commerce, Inc. (NASDAQ:NEGG) shareholders may be a little concerned to see that the Founder & Director, Faching Chang, recently sold a substantial US$3.7m worth of stock at a price of US$24.24 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.6%.

Newegg Commerce Insider Transactions Over The Last Year

The insider Vladimir Galkin made the biggest insider purchase in the last 12 months. That single transaction was for US$6.2m worth of shares at a price of US$30.19 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$20.27). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

Happily, we note that in the last year insiders paid US$84m for 1.88m shares. But insiders sold 152.79k shares worth US$3.7m. In the last twelve months there was more buying than selling by Newegg Commerce insiders. They paid about US$44.81 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Newegg Commerce Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Newegg Commerce insiders own 41% of the company, worth about US$175m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Newegg Commerce Insider Transactions Indicate?

An insider hasn't bought Newegg Commerce stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Newegg Commerce.

Of course Newegg Commerce 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 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.