Some Docebo Inc. (TSE:DCBO) shareholders may be a little concerned to see that the Independent Chair of the Board, Jason Chapnik, recently sold a substantial CA$116m worth of stock at a price of CA$112 per share. However, that sale only accounted for 7.1% of their holding, so arguably it doesn't say much about their conviction.
Docebo Insider Transactions Over The Last Year
Notably, that recent sale by Independent Chair of the Board Jason Chapnik was not the only time they sold Docebo shares this year. They previously made an even bigger sale of -CA$132m worth of shares at a price of CA$63.12 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$106. 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. This single sale was just 12% of Jason Chapnik's stake.
In the last twelve months insiders purchased 18.18k shares for CA$897k. On the other hand they divested 3.40m shares, for CA$269m. All up, insiders sold more shares in Docebo than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Docebo better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Docebo Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Docebo insiders own 59% of the company, worth about CA$2.0b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Docebo Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Docebo. You'd be interested to know, that we found 3 warning signs for Docebo and we suggest you have a look.
But note: Docebo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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