Insider Trading April 1, 2026

Newegg CLO Michael Chen conducts small sale, exercises RSUs amid volatile run-up

Chief Legal Officer sells 67 shares under a 10b5-1 plan, exercises additional awards; stock has surged year-over-year but showed recent weakness

By Hana Yamamoto NEGG
Newegg CLO Michael Chen conducts small sale, exercises RSUs amid volatile run-up
NEGG

Newegg Commerce, Inc. (NASDAQ: NEGG) Chief Legal Officer Michael Chen completed a small block sale of 67 shares on March 31, 2026, under a Rule 10b5-1 plan, while also exercising 105 restricted stock units and satisfying tax withholding on 38 shares. The combined transactions and holdings leave Chen with 2,388 shares. The company’s stock has delivered a 688% return over the past year, yet it declined 12% in the most recent week. Independent analysis cited in the filing indicates NEGG appears slightly overvalued and exhibits high price volatility.

Key Points

  • Michael Chen sold 67 shares on March 31, 2026, under a Rule 10b5-1 plan at $41.06 per share for $2,751.
  • Chen exercised 105 Restricted Stock Units at $0, acquiring 105 shares valued at $41.06 each ($4,311), and 38 shares were withheld to satisfy tax obligations ($1,560).
  • Following the transactions Chen directly owns 2,388 shares; NEGG has risen 688% over the past year but fell 12% in the prior week.

Transaction overview

Newegg Commerce, Inc. (NASDAQ: NEGG) reported that Chief Legal Officer Michael Chen sold 67 shares of the company’s common stock on March 31, 2026, at a per-share price of $41.06. The sale generated $2,751 in proceeds and was executed pursuant to a Rule 10b5-1 trading plan.

On the same date, Chen also exercised options on 105 Restricted Stock Units at an exercise price of $0, effectively converting those awards into 105 shares of common stock. Those 105 shares were recorded at the same per-share value used for the sale, $41.06, equating to $4,311. To cover tax obligations related to the exercise, 38 shares were withheld at $41.06 per share, totaling $1,560.

After accounting for the sale, the exercised awards and the shares withheld for taxes, Chen directly holds 2,388 shares of Newegg Commerce.


Market context cited in the filing

The filing notes that NEGG has produced a substantial 688% return over the past 12 months. The company’s shares, however, have also shown recent weakness, declining 12% over the past week.

According to InvestingPro analysis referenced in the disclosure, the stock currently appears slightly overvalued and trades with high price volatility. The filing indicates that additional InvestingPro tips and financial metrics are available for investors seeking further detail on NEGG’s investment profile.


Key points

  • Chen sold 67 shares on March 31, 2026, under a Rule 10b5-1 plan at $41.06 per share, for proceeds of $2,751.
  • He exercised 105 Restricted Stock Units at $0 and received 105 shares valued at $41.06 each, totaling $4,311; 38 shares were withheld for taxes, totaling $1,560.
  • After these events Chen directly owns 2,388 shares; NEGG is up 688% over the past year but down 12% in the past week.

Risks and uncertainties noted

  • Price volatility - The stock is described as trading with high price volatility, which can affect short-term valuation and trading outcomes.
  • Valuation - InvestingPro analysis indicates the shares appear slightly overvalued, a factor that may affect investment decisions.
  • Concentration - While not detailed beyond the holdings number, executive transactions and changes in insider ownership can be a consideration for investor perception in the technology/retail sector.

This report presents the transaction details as disclosed and the accompanying third-party analysis cited in the filing. It does not add or infer additional events or motives beyond what is stated in the disclosure.

Risks

  • High price volatility in NEGG shares could lead to rapid swings in market value - impacts equity investors and market sentiment in technology and retail sectors.
  • Analysts cited in the filing view the stock as slightly overvalued, which may influence valuation-sensitive investors in the same sectors.
  • Changes in insider holdings and small executive sales, while factual, can create uncertainty about insider conviction among market participants.

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