We wouldn't blame DocuSign, Inc. (NASDAQ:DOCU) shareholders if they were a little worried about the fact that Enrique Salem, the Independent Director recently netted about US$3.2m selling shares at an average price of US$214. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.0%.
The Last 12 Months Of Insider Transactions At DocuSign
The Lead Independent Director, Peter Solvik, made the biggest insider sale in the last 12 months. That single transaction was for US$3.3m worth of shares at a price of US$75.58 each. That means that even when the share price was below the current price of US$218, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.8% of Peter Solvik's holding.
Insiders in DocuSign didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership of DocuSign
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. DocuSign insiders own about US$774m worth of shares (which is 1.9% of the company). 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?
An insider sold DocuSign shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 3 warning signs for DocuSign you should be aware of.
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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