Insiders Who Sold Fold Holdings Missed Out On 35% Stock Increase

Fold Holdings, Inc.'s (NASDAQ:FLD) stock rose 35% last week, but insiders who sold US$208k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$1.04, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Fold Holdings Insider Transactions Over The Last Year

The Independent Lead Director Jonathan Kirkwood made the biggest insider purchase in the last 12 months. That single transaction was for US$64k worth of shares at a price of US$0.61 each. That means that even when the share price was higher than US$0.61 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 131.60k shares worth US$111k. But they sold 200.02k shares for US$208k. In total, Fold Holdings insiders sold more than they bought over the last year. They sold for an average price of about US$1.04. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$0.61). You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Fold Holdings

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).

Fold Holdings Insiders Bought Stock Recently

We saw some Fold Holdings insider buying shares in the last three months. In that period Independent Lead Director Jonathan Kirkwood spent US$64k on shares. But they sold US$30k worth. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Fold Holdings insiders own 23% of the company, worth about US$7.1m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Fold Holdings Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. Recent sales exacerbate our caution arising from analysis of Fold Holdings insider transactions. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in Fold Holdings.

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.

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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.