Fred Faching Chang, who serves as both a director and ten percent owner of Newegg Commerce, Inc. (NASDAQ:NEGG), recently divested 20,000 common shares of the company's stock over two days in late May. The cumulative value of these transactions was approximately $392,300.
It is important to note that these sales were not made directly by Mr. Chang but rather through an intermediary entity called Tekhill USA LLC. Within this structure, Mr. Chang functions as the sole member and manager of Tekhill USA LLC.
The timing of the divestiture comes when NEGG shares have experienced a noticeable decline. Over the past week alone, the stock had fallen by roughly 8%, trading at $18.55 per share. Furthermore, market analysis indicates that the stock generally exhibits high price volatility, evidenced by a beta measurement of 3.8.
Details of the Share Sales
The transactions unfolded across two consecutive days in late May. On May 26, 2026, Mr. Chang utilized Tekhill USA LLC to dispose of an initial block of 10,000 common shares. The weighted average price for this first set of sales was calculated at $20.43 per share, resulting in a total transaction value of $204,300. These individual transactions were varied, with reported prices fluctuating between $19.30 and $21.91.
The subsequent day, May 27, 2026, saw the sale of another 10,000 common shares. For this second batch, the weighted average price settled at $18.80 per share, amounting to $188,000. The pricing range for these sales spanned from $18.24 up to $19.70.
Current Holdings Structure
Following the completion of these two-day sale period, Mr. Chang's indirect holdings through Tekhill USA LLC were recorded at 3,156,646 common shares. His investment structure is further diversified; he also maintains an indirect stake of 450,000 common shares via Nabal Spring, LLC, where he serves in the capacity of sole member and manager. In addition to these controlled entities, Mr. Chang retains a direct ownership position encompassing 407,927 common shares of Newegg Commerce, Inc.
Market Perspective
Despite the recent selling activity by an insider, some platform analysis suggests that the stock may still be undervalued at current market levels. Specifically, NEGG has appeared on a list compiled of most undervalued stocks according to InvestingPro's evaluation criteria.
The data presented highlights significant movements in ownership structure and transaction volume for Newegg Commerce, Inc.'s shares during late May 2026. The sales were executed through controlled LLC entities, totaling $392,300 worth of stock while the underlying ticker has seen a recent decline and exhibits high historical volatility.