CEO, President & Director of Udemy Hugo Sarrazin Buys 349% More Shares

Investors who take an interest in Udemy, Inc. (NASDAQ:UDMY) should definitely note that the CEO, President & Director, Hugo Sarrazin, recently paid US$6.94 per share to buy US$257k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 349%, potentially signalling some real optimism.

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The Last 12 Months Of Insider Transactions At Udemy

The Chief Financial Officer, Sarah Blanchard, made the biggest insider sale in the last 12 months. That single transaction was for US$362k worth of shares at a price of US$8.05 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$6.87. So it is hard to draw any strong conclusion from it.

In total, Udemy insiders sold more than they bought over the last year. 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!

Check out our latest analysis for Udemy

I will like Udemy 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.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Udemy insiders own about US$28m worth of shares. That equates to 2.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Udemy Insider Transactions Indicate?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Udemy insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Udemy 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.