36% Of This Peloton Interactive Insider's Holdings Were Sold

Viewing insider transactions for Peloton Interactive, Inc.'s (NASDAQ:PTON ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Peloton Interactive

Peloton Interactive Insider Transactions Over The Last Year

The Chief Accounting Officer, Saqib Baig, made the biggest insider sale in the last 12 months. That single transaction was for US$244k worth of shares at a price of US$4.88 each. That means that an insider was selling shares at slightly below the current price (US$10.01). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 36% of Saqib Baig's holding. The only individual insider seller over the last year was Saqib Baig.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Peloton Interactive 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.

Does Peloton Interactive Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Insiders own 1.3% of Peloton Interactive shares, worth about US$48m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Peloton Interactive Tell Us?

It doesn't really mean much that no insider has traded Peloton Interactive shares in the last quarter. Our analysis of Peloton Interactive insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Peloton Interactive. Be aware that Peloton Interactive is showing 4 warning signs in our investment analysis, and 1 of those can't be ignored...

But note: Peloton Interactive 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 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.