We'd be surprised if ChannelAdvisor Corporation (NYSE:ECOM) shareholders haven't noticed that the Co-Founder & Director, Mitchell Wingo, recently sold US$193k worth of stock at US$12.88 per share. The eyebrow raising move amounted to a reduction of 34% in their holding.
The Last 12 Months Of Insider Transactions At ChannelAdvisor
Notably, that recent sale by Co-Founder & Director Mitchell Wingo was not the only time they sold ChannelAdvisor shares this year. Earlier in the year, they fetched US$24.17 per share in a -US$616k sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$12.97). So it may not tell us anything about how insiders feel about the current share price.
Insiders in ChannelAdvisor didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does ChannelAdvisor Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that ChannelAdvisor insiders own about US$9.7m worth of shares (which is 2.5% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At ChannelAdvisor Tell Us?
An insider sold ChannelAdvisor shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, ChannelAdvisor makes money, and is growing profits. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that ChannelAdvisor is showing 4 warning signs in our investment analysis, and 1 of those is significant...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.