Have Sprinklr Insiders Been Selling Stock?

Some Sprinklr, Inc. (NYSE:CXM) shareholders may be a little concerned to see that the Founder, Ragy Thomas, recently sold a substantial US$725k worth of stock at a price of US$8.84 per share. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Sprinklr

Sprinklr Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, R. David Tabors, for US$3.9m worth of shares, at about US$12.10 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place 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$8.87. So it may not shed much light on insider confidence at current levels.

Insiders in Sprinklr didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Sprinklr

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's great to see that Sprinklr insiders own 23% of the company, worth about US$513m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Sprinklr 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. But since Sprinklr 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sprinklr. Be aware that Sprinklr is showing 3 warning signs in our investment analysis, and 2 of those are concerning...

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 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.