This Insider Has Just Sold Shares In Confluent

We'd be surprised if Confluent, Inc. (NASDAQ:CFLT) shareholders haven't noticed that the Chief Financial Officer, Rohan Sivaram, recently sold US$444k worth of stock at US$17.01 per share. However, the silver lining is that the sale only reduced their total holding by 3.9%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At Confluent

In the last twelve months, the biggest single sale by an insider was when the insider, Erica Schultz, sold US$4.0m worth of shares at a price of US$31.58 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$17.79. So it may not tell us anything about how insiders feel about the current share price.

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!

View our latest analysis for Confluent

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Does Confluent Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. It's great to see that Confluent insiders own 15% of the company, worth about US$921m. 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?

Insiders sold Confluent shares recently, but they didn't buy any. 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. 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. You'd be interested to know, that we found 2 warning signs for Confluent and we suggest you have a look.

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.

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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.