Don't Ignore The Fact That This Insider Just Sold Some Shares In MongoDB, Inc. (NASDAQ:MDB)

By
Simply Wall St
Published
April 08, 2021
NasdaqGM:MDB

Some MongoDB, Inc. (NASDAQ:MDB) shareholders may be a little concerned to see that the President, Dev Ittycheria, recently sold a substantial US$2.7m worth of stock at a price of US$283 per share. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for MongoDB

MongoDB Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Charles Hazard, sold US$3.3m worth of shares at a price of US$332 per share. So we know that an insider sold shares at around the present share price of US$285. 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 MongoDB 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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGM:MDB Insider Trading Volume April 8th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does MongoDB Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. MongoDB insiders own about US$1.2b worth of shares (which is 6.9% 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 Do The MongoDB Insider Transactions Indicate?

Insiders sold MongoDB shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that MongoDB is showing 6 warning signs in our investment analysis, and 2 of those are a bit unpleasant...

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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This article by Simply Wall St is general in nature. 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.
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