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

Some Matterport, Inc. (NASDAQ:MTTR) shareholders may be a little concerned to see that the Chairman & CEO, Raymond Pittman, recently sold a substantial US$553k worth of stock at a price of US$2.87 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.1%.

View our latest analysis for Matterport

The Last 12 Months Of Insider Transactions At Matterport

Notably, that recent sale by Chairman & CEO Raymond Pittman was not the only time they sold Matterport shares this year. They previously made an even bigger sale of -US$2.1m worth of shares at a price of US$4.30 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.88. So it is hard to draw any strong conclusion from it.

Matterport insiders didn't buy any shares over the last year. 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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Matterport insiders own 6.8% of the company, worth about US$57m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Matterport Tell Us?

Insiders sold Matterport shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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 4 warning signs for Matterport (1 is a bit unpleasant) you should be aware of.

Of course Matterport 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.