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- NasdaqGS:SUMO
Have Sumo Logic, Inc. (NASDAQ:SUMO) Insiders Been Selling Their Stock?
Anyone interested in Sumo Logic, Inc. (NASDAQ:SUMO) should probably be aware that the Chief Marketing Officer, Suku Chettiar, recently divested US$111k worth of shares in the company, at an average price of US$11.84 each. On the bright side, that sale was only 3.0% of their holding, so we doubt it's very meaningful, on its own.
View our latest analysis for Sumo Logic
Sumo Logic Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President of Worldwide Field Operations, Lynne McDonald, sold US$469k worth of shares at a price of US$8.30 per share. That means that an insider was selling shares at slightly below the current price (US$11.88). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. This single sale was just 43% of Lynne McDonald's stake.
In the last year Sumo Logic insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Sumo Logic Boast High Insider Ownership?
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. Sumo Logic insiders own about US$60m worth of shares. That equates to 4.1% 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 Sumo Logic Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sumo Logic. You'd be interested to know, that we found 3 warning signs for Sumo Logic and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
What are the risks and opportunities for Sumo Logic?
Sumo Logic, Inc. provides cloud-native software-as-a-service platform that enables organizations to address the challenges and opportunities presented by digital transformation, modern applications, and cloud computing worldwide.
Rewards
Revenue is forecast to grow 13.43% per year
Risks
Shareholders have been diluted in the past year
Significant insider selling over the past 3 months
Currently unprofitable and not forecast to become profitable over the next 3 years
Further research on
Sumo Logic
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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 NasdaqGS:SUMO
Sumo Logic
Sumo Logic, Inc. provides cloud-native software-as-a-service platform that enables organizations to address the challenges and opportunities presented by digital transformation, modern applications, and cloud computing worldwide.
Excellent balance sheet with concerning outlook.
