Even if it's not a huge purchase, we think it was good to see that Daniel Nova, the Independent Director of ThredUp Inc. (NASDAQ:TDUP) recently shelled out US$66k to buy stock, at US$0.95 per share. While that isn't the hugest buy, it actually boosted their shareholding by 55%, which is good to see.

Check out our latest analysis for ThredUp

The Last 12 Months Of Insider Transactions At ThredUp

The Director Noam Paransky made the biggest insider purchase in the last 12 months. That single transaction was for US$146k worth of shares at a price of US$0.81 each. Even though the purchase was made at a significantly lower price than the recent price (US$1.12), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$510k for 613.25k shares. But insiders sold 32.82k shares worth US$62k. In total, ThredUp insiders bought more than they sold over the last year. 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!

ThredUp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ThredUp insiders own about US$12m worth of shares. That equates to 9.2% 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 Does This Data Suggest About ThredUp Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest ThredUp insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ThredUp. Be aware that ThredUp is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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.