Have Pegasystems Insiders Been Selling Stock?

Some Pegasystems Inc. (NASDAQ:PEGA) shareholders may be a little concerned to see that the Chief Product Officer, Kerim Akgonul, recently sold a substantial US$537k worth of stock at a price of US$89.54 per share. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

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Pegasystems Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Richard Jones, sold US$609k worth of shares at a price of US$60.88 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$91.69. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 1.9% of Richard Jones's holding.

In total, Pegasystems insiders sold more than they bought over the last year. 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!

Check out our latest analysis for Pegasystems

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Does Pegasystems Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Pegasystems insiders own about US$3.7b worth of shares (which is 47% 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 Pegasystems Tell Us?

Insiders haven't bought Pegasystems stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Pegasystems is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Pegasystems that deserve your attention before buying any shares.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.