Selling ZipRecruiter Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

ZipRecruiter, Inc.'s (NYSE:ZIP) stock price has dropped 10.0% in the previous week, but insiders who sold US$887k in stock over the past year have had less luck. Given that the average selling price of US$5.25 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

ZipRecruiter Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Stephen Harrick, for US$860k worth of shares, at about US$5.29 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. The silver lining is that this sell-down took place above the latest price (US$3.51). So it is hard to draw any strong conclusion from it.

ZipRecruiter insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for ZipRecruiter

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).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that ZipRecruiter insiders own 4.3% of the company, worth about US$14m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The ZipRecruiter Insider Transactions Indicate?

The fact that there have been no ZipRecruiter insider transactions recently certainly doesn't bother us. Our analysis of ZipRecruiter insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ZipRecruiter. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of ZipRecruiter.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.