Insiders at Confluent, Inc. (NASDAQ:CFLT) sold US$20m worth of stock at an average price of US$83.25 a share over the past year, making the most of their investment. The company's market worth decreased by US$2.0b over the past week after the stock price dropped 17%, although insiders were able to minimize their losses
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Confluent Insider Transactions Over The Last Year
The insider, John Gurley, made the biggest insider sale in the last 12 months. That single transaction was for US$11m worth of shares at a price of US$86.43 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$36.24). So it is hard to draw any strong conclusion from it.
Insiders in Confluent 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. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Confluent
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Confluent insiders own 22% of the company, currently worth about US$2.1b 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 Confluent Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Confluent shares in the last quarter. While we feel good about high insider ownership of Confluent, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Confluent. Case in point: We've spotted 3 warning signs for Confluent you should be aware of, and 1 of these is potentially serious.
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.
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.