Some Cloudera, Inc. (NYSE:CLDR) shareholders may be a little concerned to see that the Director, Robert Bearden, recently sold a whopping US$2.3m worth of stock at a price of US$11.82 per share. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we’ve seen.
The Last 12 Months Of Insider Transactions At Cloudera
In fact, the recent sale by Director Robert Bearden was not their only sale of Cloudera shares this year. Earlier in the year, they fetched US$11.60 per share in a -US$7.3m sale. That means that even when the share price was slightly below the current price of US$11.63, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 50% of Robert Bearden’s holding.
Robert Bearden sold a total of 820978 shares over the year at an average price of US$11.66. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does Cloudera Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Cloudera insiders own 2.5% of the company, worth about US$84m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Cloudera Insiders?
An insider sold stock recently, but they haven’t been buying. 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. Of course, the future is what matters most. So if you are interested in Cloudera, you should check out this free report on analyst forecasts for the company.
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.
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