Don't Ignore The Fact That This Insider Just Sold Some Shares In ChannelAdvisor Corporation (NYSE:ECOM)

We'd be surprised if ChannelAdvisor Corporation (NYSE:ECOM) shareholders haven't noticed that the Independent Chairman, Timothy Buckley, recently sold US$449k worth of stock at US$25.68 per share. The eyebrow raising move amounted to a reduction of 19% in their holding.

See our latest analysis for ChannelAdvisor

The Last 12 Months Of Insider Transactions At ChannelAdvisor

Over the last year, we can see that the biggest insider sale was by the Co-Founder & Director, Mitchell Wingo, for US$1.4m worth of shares, at about US$13.99 per share. That means that even when the share price was below the current price of US$25.63, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 36% of Mitchell Wingo's stake.

Happily, we note that in the last year insiders paid US$127k for 24.15k shares. But they sold 157.50k shares for US$2.0m. All up, insiders sold more shares in ChannelAdvisor 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like ChannelAdvisor better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of ChannelAdvisor

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.8% of ChannelAdvisor shares, worth about US$21m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At ChannelAdvisor Tell Us?

Insiders sold ChannelAdvisor shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that ChannelAdvisor is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While we like knowing 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 3 warning signs for ChannelAdvisor that deserve your attention before buying any shares.

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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This article by Simply Wall St is general in nature. 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.
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