We wouldn't blame MongoDB, Inc. (NASDAQ:MDB) shareholders if they were a little worried about the fact that Cedric Pech, the Chief Revenue Officer recently netted about US$6.1m selling shares at an average price of US$398. That's a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.
View our latest analysis for MongoDB
MongoDB Insider Transactions Over The Last Year
Notably, that recent sale by Cedric Pech is the biggest insider sale of MongoDB shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$389. 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.
In the last year MongoDB insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. MongoDB insiders own about US$1.0b worth of shares (which is 3.7% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At MongoDB Tell Us?
Insiders haven't bought MongoDB stock in the last three months, but there was some selling. 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 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. You'd be interested to know, that we found 3 warning signs for MongoDB and we suggest you have a look.
Of course MongoDB 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, but not derivative transactions.
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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.
About NasdaqGM:MDB
Flawless balance sheet with reasonable growth potential.
