Remitly Global Insiders Sell US$761k Of Stock, Possibly Signalling Caution

In the last year, many Remitly Global, Inc. (NASDAQ:RELY) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Remitly Global

The Last 12 Months Of Insider Transactions At Remitly Global

The Chief Technology Officer, Ankur Sinha, made the biggest insider sale in the last 12 months. That single transaction was for US$691k worth of shares at a price of US$21.04 each. That means that even when the share price was below the current price of US$23.07, an insider wanted to cash in some shares. 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. This single sale was just 12% of Ankur Sinha's stake.

Insiders in Remitly Global didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Remitly Global Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at Remitly Global. Chief Technology Officer Ankur Sinha sold just US$23k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of Remitly Global

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. Remitly Global insiders own about US$261m worth of shares (which is 5.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Remitly Global Insider Transactions Indicate?

While there has not been any insider buying in the last three months, there has been selling. However, the sales are not big enough to concern us at all. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Remitly Global insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Remitly Global. Every company has risks, and we've spotted 1 warning sign for Remitly Global you should know about.

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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