Intuit Independent Director Eve Burton Sells 100% Of Holding

We wouldn't blame Intuit Inc. (NASDAQ:INTU) shareholders if they were a little worried about the fact that Eve Burton, the Independent Director recently netted about US$1.0m selling shares at an average price of US$600. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

Intuit Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP and Chief People & Places Officer, Laura Fennell, sold US$5.1m worth of shares at a price of US$659 per share. So what is clear is that an insider saw fit to sell at around the current price of US$604. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Intuit didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Intuit

I will like Intuit better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Intuit 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Intuit insiders own 2.3% of the company, currently worth about US$3.9b 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.

So What Does This Data Suggest About Intuit Insiders?

Insiders sold Intuit shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Intuit makes money, and is growing profits. 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. You'd be interested to know, that we found 1 warning sign for Intuit and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.