We wouldn't blame DocuSign, Inc. (NASDAQ:DOCU) shareholders if they were a little worried about the fact that Peter Solvik, the Lead Independent Director recently netted about US$4.2m selling shares at an average price of US$241. However, that sale only accounted for 6.5% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At DocuSign
Notably, that recent sale by Peter Solvik is the biggest insider sale of DocuSign shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$253). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 6.5%of Peter Solvik's holding.
In the last year DocuSign insiders didn't buy any company stock. 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!
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 DocuSign
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. DocuSign insiders own 1.5% of the company, currently worth about US$760m based on the recent share price. 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 Does This Data Suggest About DocuSign Insiders?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DocuSign. Every company has risks, and we've spotted 3 warning signs for DocuSign you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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