Edward Anderson Spends US$298k Buying Couchbase Shares

Potential Couchbase, Inc. (NASDAQ:BASE) shareholders may wish to note that insider Edward Anderson recently bought US$298k worth of stock, paying US$14.16 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 67%.

View our latest analysis for Couchbase

The Last 12 Months Of Insider Transactions At Couchbase

The Chair, President & CEO, Matthew Cain, made the biggest insider sale in the last 12 months. That single transaction was for US$446k worth of shares at a price of US$23.59 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$14.47. So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Couchbase shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Couchbase

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Couchbase insiders own about US$23m worth of shares. That equates to 3.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Couchbase Insiders?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Couchbase insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. While it's good to be aware of 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. Case in point: We've spotted 2 warning signs for Couchbase you should be aware of.

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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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.