Even if it’s not a huge purchase, we think it was good to see that Vikram Verma, the CEO & Director of 8×8, Inc. (NYSE:EGHT) recently shelled out US$99k to buy stock, at US$23.54 per share. However, we do note that it only increased their holding by 0.5%, and it wasn’t a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At 8×8
The Senior Vice President of Strategy, Darren Hakeman, made the biggest insider sale in the last 12 months. That single transaction was for US$186k worth of shares at a price of US$23.25 each. That means that even when the share price was below the current price of US$23.94, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. We note that the biggest single sale was only 12.4% of Darren Hakeman’s holding. Darren Hakeman was the only individual insider to sell shares in the last twelve months.
Vikram Verma purchased 9930 shares over the year. The average price per share was US$19.82. You can see the insider transactions (by 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!
Does 8×8 Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. 8×8 insiders own about US$78m worth of shares. That equates to 3.3% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At 8×8 Tell Us?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Insiders likely see value in 8×8 shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in 8×8, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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, but not derivative transactions.
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