Don't Ignore The Insider Selling In LivePerson

Anyone interested in LivePerson, Inc. (NASDAQ:LPSN) should probably be aware that the CEO & Director, John Sabino, recently divested US$403k worth of shares in the company, at an average price of US$0.93 each. That sale was 13% of their holding, so it does make us raise an eyebrow.

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LivePerson Insider Transactions Over The Last Year

In fact, the recent sale by John Sabino was the biggest sale of LivePerson shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$0.92. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

Insiders in LivePerson 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!

See our latest analysis for LivePerson

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Insider Ownership Of LivePerson

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that LivePerson insiders own about US$5.2m worth of shares (which is 6.2% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The LivePerson Insider Transactions Indicate?

Insiders sold LivePerson shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. 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. For instance, we've identified 5 warning signs for LivePerson (2 are a bit concerning) you should be aware of.

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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.