Have Insiders Sold Braze Shares Recently?

Some Braze, Inc. (NASDAQ:BRZE) shareholders may be a little concerned to see that the Co-Founder, William Magnuson, recently sold a substantial US$738k worth of stock at a price of US$41.37 per share. However, that sale only accounted for 7.0% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Braze

The Last 12 Months Of Insider Transactions At Braze

The insider, Scott Tobin, made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$48.37 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$43.47). So it is hard to draw any strong conclusion from it.

Braze insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Braze

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Braze insiders own 9.0% of the company, worth about US$404m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Braze Insider Transactions Indicate?

Insiders haven't bought Braze stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Braze and understanding these should be part of your investment process.

But note: Braze may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.