Insiders seem to have made the most of their holdings by selling US$561k worth of Xometry, Inc. (NASDAQ:XMTR) stock at an average sell price of US$28.10 during the past year. The company's market valuation decreased by US$304m after the stock price dropped 16% over the past week, but insiders were spared from painful losses.

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

Check out our latest analysis for Xometry

The Last 12 Months Of Insider Transactions At Xometry

The Advisor, Matthew Leibel, made the biggest insider sale in the last 12 months. That single transaction was for US$498k worth of shares at a price of US$30.08 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$31.31. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 35% of Matthew Leibel's holding. Matthew Leibel was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid US$317k for 20.50k shares. But they sold 19.96k shares for US$561k. Matthew Leibel sold a total of 19.96k shares over the year at an average price of US$28.10. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Xometry Boast High 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. It's great to see that Xometry insiders own 14% of the company, worth about US$231m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Xometry Tell Us?

It doesn't really mean much that no insider has traded Xometry shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Xometry insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Xometry. Case in point: We've spotted 1 warning sign for Xometry you should be aware of.

Of course Xometry 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.

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.