The Chief Financial Officer of Matterport, Inc. (NASDAQ:MTTR), James Fay, Just Sold 36% Of Their Holding

We wouldn't blame Matterport, Inc. (NASDAQ:MTTR) shareholders if they were a little worried about the fact that James Fay, the Chief Financial Officer recently netted about US$1.5m selling shares at an average price of US$5.07. That sale reduced their total holding by 36% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Matterport

Matterport Insider Transactions Over The Last Year

In fact, the recent sale by James Fay was the biggest sale of Matterport shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$4.19. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$400k for 60.00k shares. But insiders sold 300.00k shares worth US$1.5m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Matterport Boast High 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. Matterport insiders own about US$78m worth of shares. That equates to 6.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Matterport Insider Transactions Indicate?

An insider hasn't bought Matterport stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Matterport. For instance, we've identified 4 warning signs for Matterport (1 is a bit concerning) you should be aware of.

But note: Matterport may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.