Chief Financial Officer Ying Liu Just Sold A Bunch Of Shares In ContextLogic Inc. (NASDAQ:WISH)

By
Simply Wall St
Published
February 20, 2022
NasdaqGS:WISH
Source: Shutterstock

Anyone interested in ContextLogic Inc. (NASDAQ:WISH) should probably be aware that the Chief Financial Officer, Ying Liu, recently divested US$249k worth of shares in the company, at an average price of US$2.40 each. That sale was 39% of their holding, so it does make us raise an eyebrow.

See our latest analysis for ContextLogic

ContextLogic Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the General Counsel & Secretary, Devang Shah, for US$464k worth of shares, at about US$4.89 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$2.17). So it is hard to draw any strong conclusion from it.

Insiders in ContextLogic didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:WISH Insider Trading Volume February 20th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does ContextLogic Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ContextLogic insiders own 10% of the company, currently worth about US$141m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About ContextLogic Insiders?

Insiders sold ContextLogic shares recently, but they didn't buy any. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 4 warning signs for ContextLogic that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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