Trade Alert: Independent Director Of LendingTree Diego Rodriguez Has Sold Stock

Investors may wish to note that the Independent Director of LendingTree, Inc., Diego Rodriguez, recently netted US$98k from selling stock, receiving an average price of US$49.16. It wasn't a huge sale, but it did reduce their holding by 32%. This does not instill confidence.

View our latest analysis for LendingTree

The Last 12 Months Of Insider Transactions At LendingTree

Over the last year, we can see that the biggest insider sale was by the Founder, Douglas Lebda, for US$7.3m worth of shares, at about US$18.96 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$51.79. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 15% of Douglas Lebda's stake.

Insiders in LendingTree didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of LendingTree

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. LendingTree insiders own about US$132m worth of shares (which is 18% 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.

What Might The Insider Transactions At LendingTree Tell Us?

An insider hasn't bought LendingTree 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. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LendingTree. Case in point: We've spotted 2 warning signs for LendingTree you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.