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Trade Alert: The Non-Employee Independent Director Of Samsara Inc. (NYSE:IOT), Hemant Taneja, Has Sold Some Shares Recently
We wouldn't blame Samsara Inc. (NYSE:IOT) shareholders if they were a little worried about the fact that Hemant Taneja, the Non-Employee Independent Director recently netted about US$57m selling shares at an average price of US$18.86. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
View our latest analysis for Samsara
The Last 12 Months Of Insider Transactions At Samsara
Notably, that recent sale by Hemant Taneja is the biggest insider sale of Samsara shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$19.02, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 100% of Hemant Taneja's stake.
Samsara insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Samsara better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Samsara Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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 Samsara insiders own 50% of the company, worth about US$4.9b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Samsara Insider Transactions Indicate?
Insiders sold Samsara shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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. 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. For example - Samsara has 3 warning signs we think you should be aware of.
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.
What are the risks and opportunities for Samsara?
Samsara Inc. provides solutions that connect physical operations data to its Connected Operations Cloud in the United States and internationally.
Rewards
Revenue is forecast to grow 21.27% per year
Revenue grew by 52.5% over the past year
Risks
Shareholders have been diluted in the past year
Significant insider selling over the past 3 months
Currently unprofitable and not forecast to become profitable over the next 3 years
Further research on
Samsara
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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.
About NYSE:IOT
Samsara
Samsara Inc. provides solutions that connect physical operations data to its Connected Operations Cloud in the United States and internationally.
Excellent balance sheet with limited growth.
