This Insider Has Just Sold Shares In Peloton Interactive

Some Peloton Interactive, Inc. (NASDAQ:PTON) shareholders may be a little concerned to see that the Chief Product Officer, Nick Caldwell, recently sold a substantial US$1.6m worth of stock at a price of US$7.78 per share. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.

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Peloton Interactive Insider Transactions Over The Last Year

Notably, that recent sale by Nick Caldwell is the biggest insider sale of Peloton Interactive shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$7.93). 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 22% of Nick Caldwell's stake.

Insiders in Peloton Interactive didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Peloton Interactive

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. We usually like to see fairly high levels of insider ownership. Peloton Interactive insiders own about US$44m worth of shares. That equates to 1.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Peloton Interactive Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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 2 warning signs in our investment analysis, and 1 of those is significant...

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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.