Don't Ignore The Fact That This Insider Just Sold Some Shares In Appian Corporation (NASDAQ:APPN)

By
Simply Wall St
Published
November 19, 2020

We wouldn't blame Appian Corporation (NASDAQ:APPN) shareholders if they were a little worried about the fact that Prashanth Boccassam, the Independent Director recently netted about US$1.1m selling shares at an average price of US$98.91. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

View our latest analysis for Appian

The Last 12 Months Of Insider Transactions At Appian

In fact, the recent sale by Prashanth Boccassam was the biggest sale of Appian shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$111. 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. 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. This single sale was just 19% of Prashanth Boccassam's stake.

Insiders in Appian 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!

NasdaqGM:APPN Insider Trading Volume November 19th 2020

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Appian Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Appian insiders own 47% of the company, currently worth about US$3.6b 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 Do The Appian Insider Transactions Indicate?

Insiders 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Appian. For example - Appian has 4 warning signs we think you should be aware of.

Of course Appian 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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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. 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.
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