Possible Bearish Signals With CrowdStrike Holdings Insiders Disposing Stock

Many CrowdStrike Holdings, Inc. (NASDAQ:CRWD) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for CrowdStrike Holdings

CrowdStrike Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Independent Director Roxanne Austin was not the only time they sold CrowdStrike Holdings shares this year. They previously made an even bigger sale of -US$8.4m worth of shares at a price of US$153 per share. That means that an insider was selling shares at slightly below the current price (US$188). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 47% of Roxanne Austin's holding.

All up, insiders sold more shares in CrowdStrike Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insiders At CrowdStrike Holdings Have Sold Stock Recently

The last three months saw significant insider selling at CrowdStrike Holdings. Specifically, insiders ditched US$8.7m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of CrowdStrike Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. CrowdStrike Holdings insiders own 4.4% of the company, currently worth about US$2.0b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At CrowdStrike Holdings Tell Us?

Insiders haven't bought CrowdStrike Holdings stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CrowdStrike Holdings. In terms of investment risks, we've identified 2 warning signs with CrowdStrike Holdings and understanding them should be part of your investment process.

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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.