Informatica Inc. (NYSE:INFA) insiders who sold US$819k worth of stock earlier this year are probably glad they did so as market cap slides to US$5.0b

By
Simply Wall St
Published
May 11, 2022
NYSE:INFA
Source: Shutterstock

Insiders at Informatica Inc. (NYSE:INFA) sold US$819k worth of stock at an average price of US$18.83 a share over the past year, making the most of their investment. The company's market worth decreased by US$631m over the past week after the stock price dropped 11%, although insiders were able to minimize their losses

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Informatica

The Last 12 Months Of Insider Transactions At Informatica

Notably, that recent sale by Ansa Sekharan is the biggest insider sale of Informatica shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$17.68. So it may not shed much light on insider confidence at current levels.

Informatica insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:INFA Insider Trading Volume May 11th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Informatica Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Informatica. In total, insiders sold US$819k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership of Informatica

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. Informatica insiders own about US$24m worth of shares. That equates to 0.5% of the company. 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 Informatica Insiders?

Insiders sold Informatica shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after 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. Case in point: We've spotted 2 warning signs for Informatica you should be aware of.

Of course Informatica may not be the best stock to buy. So you may wish to see this free collection of high quality 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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