Don't Ignore The Insider Selling In Procore Technologies

Some Procore Technologies, Inc. (NYSE:PCOR) shareholders may be a little concerned to see that the Founder, Craig Courtemanche, recently sold a substantial US$1.9m worth of stock at a price of US$62.97 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.7%.

View our latest analysis for Procore Technologies

Procore Technologies Insider Transactions Over The Last Year

Notably, that recent sale by Founder Craig Courtemanche was not the only time they sold Procore Technologies shares this year. They previously made an even bigger sale of -US$3.5m worth of shares at a price of US$64.25 per share. So what is clear is that an insider saw fit to sell at around the current price of US$63.96. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Procore Technologies insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

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. Procore Technologies insiders own about US$692m worth of shares (which is 7.6% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Procore Technologies Insiders?

Insiders sold stock recently, but they haven't been buying. 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. Our analysis shows 4 warning signs for Procore Technologies (1 is a bit concerning!) and we strongly recommend you look at them before investing.

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. 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.