Anyone interested in Cardlytics, Inc. (NASDAQ:CDLX) should probably be aware that the Director, Tony Weisman, recently divested US$266k worth of shares in the company, at an average price of US$31.36 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn’t exactly instill confidence.
The Last 12 Months Of Insider Transactions At Cardlytics
In fact, the recent sale by Tony Weisman was the biggest sale of Cardlytics shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$33.93, an insider wanted to cash in some shares. 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. We note that the biggest single sale was 100% of Tony Weisman’s holding.
We note that in the last year insiders divested 13678 shares for a total of US$373k. In the last year Cardlytics insiders didn’t buy any company stock. The chart below shows insider transactions (by 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!
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Cardlytics insiders own 6.6% of the company, worth about US$51m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Cardlytics Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! Of course, the future is what matters most. So if you are interested in Cardlytics, you should check out this free report on analyst forecasts for the company.
But note: Cardlytics 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.