We’d be surprised if MongoDB, Inc. (NASDAQ:MDB) shareholders haven’t noticed that the Independent Director, Charles Hazard, recently sold US$202k worth of stock at US$121 per share. However, the silver lining is that the sale only reduced their total holding by 1.2%, so we’re hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At MongoDB
In the last twelve months, the biggest single sale by an insider was when the Director, John McMahon, sold US$3.4m worth of shares at a price of US$173 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$131. So it may not shed much light on insider confidence at current levels.
We note that in the last year insiders divested 58381 shares for a total of US$8.3m. Insiders in MongoDB didn’t buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of MongoDB
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. MongoDB insiders own about US$956m worth of shares (which is 13% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At MongoDB Tell Us?
Insiders sold stock recently, but they haven’t been buying. And even if we look to 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. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for MongoDB.
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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.