Insider Selling in a Volatile Market
On January 6, 2026, Chad M. Smith, the President and Chief Operating Officer of Better Home & Finance Holding Co., sold 2,843 Class A shares at an average price of $35.15. The sale occurred slightly above the market close of $33.78 and followed a series of rapid transactions in December 2025, during which Smith off‑loaded more than 10,000 shares over a matter of days. Despite these sales, he maintained a substantial holding of roughly 28,000 shares.
The timing of the sell‑off coincided with a modest 0.11 % rise in the share price and a sharp uptick in social‑media buzz (≈ 278 %). This pattern of frequent sales amid a volatile share price may indicate that Smith is actively managing personal exposure to a company whose valuation has swung from a 52‑week low of $7.71 to a high of $94.06 within the same year.
Implications for the Company and Its Investors
The proximity of Smith’s sales to the company’s annual report release on December 19, and to a 7.5 % weekly rally, raises questions about whether the insider is capitalizing on a temporary price spike. Better Home & Finance has historically reported negative earnings (P/E = –2.94), yet its market capitalization of $549 million and a price‑book ratio of 13.01 suggest that investors are pricing in future growth in digital mortgage and real‑estate services.
If insiders continue to sell, it could signal a lack of confidence in near‑term profitability or a desire to diversify holdings amid ongoing regulatory scrutiny of digital mortgage platforms. Conversely, the sizable shareholdings (≈ 28 000 shares) indicate that Smith still believes in the long‑term potential of the business, which may provide a stabilizing force for shareholders.
Profile of the Active Insider
Chad M. Smith’s transaction history is characterized by both purchases and sales. In December 2025, he purchased 4,833 shares on the 1st, only to sell 2,455 a few hours later. He also sold 4,833 restricted stock units, suggesting that his compensation package includes vesting incentives that he has begun to liquidate. Over the past year, his net selling volume has exceeded 12,000 shares, yet he continues to retain a sizable stake.
This duality—selling for liquidity while holding—suggests that Smith is managing personal cash flow needs while maintaining confidence in the company’s strategic direction. The timing of his sales during periods of high market volatility hints at a preference for capitalizing on short‑term price movements rather than following a long‑term hold strategy.
Investor Takeaway
For investors, the insider activity signals two key points:
Volatility and Short‑Term Trading Opportunities The company’s stock is experiencing significant volatility, which could create short‑term trading opportunities for market‑timing investors.
Management Confidence and Liquidity Needs Senior management’s confidence remains present but may be tempered by a need for liquidity or a reassessment of the company’s near‑term earnings prospects.
Potential buyers should weigh the company’s negative earnings and high valuation multiples against its digital platform moat. Sellers might consider the risk of a price drop following a rapid sell‑off by insiders. In either case, keeping an eye on future filings and earnings releases will be crucial for navigating the next 12–18 months of Better Home & Finance’s journey.
| Date | Owner | Transaction Type | Shares | Price per Share | Security |
|---|---|---|---|---|---|
| 2026‑01‑06 | Smith Chad M. (Pres & COO, Better Mortgage) | Sell | 2,843.00 | 35.15 | Class A Common Stock |
