Have Insiders Sold Confluent Shares Recently?

We wouldn't blame Confluent, Inc. (NASDAQ:CFLT) shareholders if they were a little worried about the fact that Rohan Sivaram, the Chief Financial Officer recently netted about US$641k selling shares at an average price of US$28.23. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.1%.

See our latest analysis for Confluent

The Last 12 Months Of Insider Transactions At Confluent

Notably, that recent sale by Chief Financial Officer Rohan Sivaram was not the only time they sold Confluent shares this year. They previously made an even bigger sale of -US$673k worth of shares at a price of US$31.96 per share. That means that an insider was selling shares at around the current price of US$31.52. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Confluent didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Confluent

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. It's great to see that Confluent insiders own 16% of the company, worth about US$1.7b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Confluent Tell Us?

Insiders haven't bought Confluent 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. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 3 warning signs for Confluent that deserve your attention before buying any shares.

But note: Confluent 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.