Have Oracle Insiders Been Selling Stock?

We wouldn't blame Oracle Corporation (NYSE:ORCL) shareholders if they were a little worried about the fact that Clayton Magouyrk, the Chief Executive Officer & Director recently netted about US$11m selling shares at an average price of US$277. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.

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Oracle Insider Transactions Over The Last Year

Notably, that recent sale by Clayton Magouyrk is the biggest insider sale of Oracle shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$281). 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 just 21% of Clayton Magouyrk's stake.

Happily, we note that in the last year insiders paid US$1.1m for 5.98k shares. On the other hand they divested 126.30k shares, for US$33m. In total, Oracle insiders sold more than they bought over 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!

See our latest analysis for Oracle

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Does Oracle Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Oracle insiders own 41% of the company, worth about US$330b. 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 Does This Data Suggest About Oracle Insiders?

Insiders sold Oracle shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Oracle makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oracle. For example - Oracle has 3 warning signs we think you should be aware of.

But note: Oracle may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.