Anyone interested in Twitter, Inc. (NYSE:TWTR) should probably be aware that the Chief Accounting Officer, Robert Kaiden, recently divested US$328k worth of shares in the company, at an average price of US$51.53 each. The eyebrow raising move amounted to a reduction of 28% in their holding.
Twitter Insider Transactions Over The Last Year
The Non-Employee Director, Omid Kordestani, made the biggest insider sale in the last 12 months. That single transaction was for US$7.4m worth of shares at a price of US$45.30 each. That means that even when the share price was below the current price of US$56.78, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 35% of Omid Kordestani's holding.
Insiders in Twitter 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!
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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. Twitter insiders own 2.4% of the company, currently worth about US$1.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Twitter Insiders?
Insiders haven't bought Twitter stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Twitter. While conducting our analysis, we found that Twitter has 3 warning signs and it would be unwise to ignore them.
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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, but not derivative transactions.
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