Have Insiders Sold 8x8 Shares Recently?

Anyone interested in 8x8, Inc. (NASDAQ:EGHT) should probably be aware that the CEO & Director, Samuel Wilson, recently divested US$150k worth of shares in the company, at an average price of US$1.92 each. However, the silver lining is that the sale only reduced their total holding by 7.7%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for 8x8

The Last 12 Months Of Insider Transactions At 8x8

Notably, that recent sale by CEO & Director Samuel Wilson was not the only time they sold 8x8 shares this year. They previously made an even bigger sale of -US$166k worth of shares at a price of US$3.53 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 silver lining is that this sell-down took place above the latest price (US$2.02). So it may not tell us anything about how insiders feel about the current share price.

Insiders in 8x8 didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does 8x8 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that 8x8 insiders own about US$5.1m worth of shares (which is 2.0% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The 8x8 Insider Transactions Indicate?

Insiders haven't bought 8x8 stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 4 warning signs for 8x8 that deserve your attention before buying any shares.

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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.

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