Shareholders Can't Ignore US$601k Of Sales By ChargePoint Holdings Insiders

Despite the fact that ChargePoint Holdings, Inc. (NYSE:CHPT) stock rose 14% last week, insiders who sold US$601k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$1.38, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for ChargePoint Holdings

The Last 12 Months Of Insider Transactions At ChargePoint Holdings

The insider, Henrik Gerdes, made the biggest insider sale in the last 12 months. That single transaction was for US$80k worth of shares at a price of US$1.51 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.22. So it may not tell us anything about how insiders feel about the current share price.

In the last year ChargePoint Holdings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like ChargePoint Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

ChargePoint Holdings Insiders Are Selling The Stock

The last quarter saw substantial insider selling of ChargePoint Holdings shares. Specifically, insiders ditched US$204k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that ChargePoint Holdings insiders own about US$9.2m worth of shares (which is 1.7% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The ChargePoint Holdings Insider Transactions Indicate?

Insiders haven't bought ChargePoint Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - ChargePoint Holdings has 3 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.