Don't Ignore The Fact That This Insider Just Sold Some Shares In Equinix, Inc. (REIT) (NASDAQ:EQIX)

By
Simply Wall St
Published
May 21, 2021
NasdaqGS:EQIX
Source: Shutterstock

Anyone interested in Equinix, Inc. (REIT) (NASDAQ:EQIX) should probably be aware that the Lead Independent Director, Christopher Paisley, recently divested US$143k worth of shares in the company, at an average price of US$715 each. However, the silver lining is that the sale only reduced their total holding by 1.1%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Equinix (REIT)

The Last 12 Months Of Insider Transactions At Equinix (REIT)

Over the last year, we can see that the biggest insider sale was by the Independent Director, Gary Hromadko, for US$7.9m worth of shares, at about US$790 per share. That means that an insider was selling shares at around the current price of US$725. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Equinix (REIT) 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:EQIX Insider Trading Volume May 22nd 2021

I will like Equinix (REIT) better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Equinix (REIT) Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Equinix (REIT) insiders own 0.5% of the company, currently worth about US$306m 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 Equinix (REIT) Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with Equinix (REIT) (including 1 which makes us a bit uncomfortable).

Of course Equinix (REIT) 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, but not derivative transactions.

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