On May 31, 2023, CEO and Chairperson, 10% Owner Gleb Budman sold 26,000 shares of Backblaze Inc (BLZE, Financial). This move comes amidst a year of insider selling activity for the company, with Budman having sold a total of 498,689 shares over the past year and purchasing 0 shares in total.
Who is Gleb Budman of Backblaze Inc?
Gleb Budman is the CEO, Chairperson, and a 10% owner of Backblaze Inc. He co-founded the company in 2007 and has been instrumental in its growth and success. Under his leadership, Backblaze has become a leading provider of cloud storage and backup solutions for both individual users and businesses.
Backblaze Inc's Business Description
Backblaze Inc is a technology company that specializes in providing cloud storage and backup solutions. The company offers a range of products and services, including personal backup, business backup, and B2 Cloud Storage. These solutions are designed to help users securely store and access their data, as well as protect against data loss due to hardware failure, theft, or natural disasters. With a focus on simplicity, affordability, and reliability, Backblaze has attracted a large customer base and continues to grow its market presence.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, there have been 0 insider buys and 364 insider sells for Backblaze Inc. This trend suggests that insiders may be taking advantage of the stock's current valuation to cash in on their holdings. On the day of Gleb Budman's recent sale, shares of Backblaze Inc were trading at $4.15 apiece, giving the stock a market cap of $149.126 million.
To better understand the relationship between insider transactions and stock price, it's essential to consider the company's valuation. The GF Value is an intrinsic value estimate developed by GuruFocus that takes into account historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow), a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
Based on this analysis, it appears that the recent insider selling activity may be a result of the stock's current valuation. While it's impossible to predict future stock price movements with certainty, investors should keep an eye on insider transactions as they can provide valuable insights into the company's prospects and the insiders' confidence in its performance.
Conclusion
The recent sale of 26,000 shares by CEO Gleb Budman is part of a broader trend of insider selling for Backblaze Inc over the past year. While this activity may raise concerns for some investors, it's essential to consider the stock's valuation and the potential reasons behind the selling. By monitoring insider transactions and analyzing the company's performance, investors can gain a better understanding of the stock's prospects and make more informed decisions about their investments.
