This Insider Has Just Sold Shares In GitLab

We wouldn't blame GitLab Inc. (NASDAQ:GTLB) shareholders if they were a little worried about the fact that Susan Bostrom, the Independent Director recently netted about US$1.2m selling shares at an average price of US$60.19. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.1%.

Check out our latest analysis for GitLab

The Last 12 Months Of Insider Transactions At GitLab

In fact, the recent sale by Susan Bostrom was the biggest sale of GitLab shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$57.97. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

GitLab insiders didn't buy any shares over 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does GitLab Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. GitLab insiders own 14% of the company, currently worth about US$1.3b based on the recent share price. 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 GitLab Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for GitLab (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.

Of course GitLab may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.