Upwork President Hayden Brown Sells 33% Of Holding

Some Upwork Inc. (NASDAQ:UPWK) shareholders may be a little concerned to see that the President, Hayden Brown, recently sold a substantial US$6.8m worth of stock at a price of US$19.51 per share. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Upwork

The Independent Chairman of the Board, Thomas Layton, made the biggest insider sale in the last 12 months. That single transaction was for US$8.7m worth of shares at a price of US$17.52 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$19.74. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 23% of Thomas Layton's holding.

In the last year Upwork insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Upwork

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Insider Ownership Of Upwork

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Upwork insiders own 6.6% of the company, currently worth about US$171m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Upwork Tell Us?

Insiders haven't bought Upwork stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Upwork makes money, and is growing profits. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Upwork and understanding it should be part of your investment process.

Of course Upwork may not be the best stock to buy. So you may wish to see this free collection of high quality 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.