Potential Solo Brands, Inc. (NYSE:DTC) shareholders may wish to note that the President, Christopher Metz, recently bought US$325k worth of stock, paying US$1.30 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 100%, potentially signalling some real optimism.

View our latest analysis for Solo Brands

The Last 12 Months Of Insider Transactions At Solo Brands

Over the last year, we can see that the biggest insider sale was by the insider, Somer Webb, for US$471k worth of shares, at about US$4.35 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$1.28). So it may not shed much light on insider confidence at current levels. Somer Webb was the only individual insider to sell over the last year.

Christopher Metz bought 500.00k shares over the last 12 months at an average price of US$1.69. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Solo Brands is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$1.2m worth of Solo Brands stock, about 1.0% of the company. We prefer to see high levels of insider ownership.

So What Do The Solo Brands Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Solo Brands insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Solo Brands has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

Of course Solo Brands 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.

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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.