Stock Analysis

Don't Ignore The Insider Selling In Procore Technologies

NYSE:PCOR
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Some Procore Technologies, Inc. (NYSE:PCOR) shareholders may be a little concerned to see that the Founder, Craig Courtemanche, recently sold a substantial US$1.6m worth of stock at a price of US$70.17 per share. However, that sale only accounted for 0.6% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Procore Technologies

Notably, that recent sale by Founder Craig Courtemanche was not the only time they sold Procore Technologies shares this year. Earlier in the year, they fetched US$73.90 per share in a -US$4.8m sale. So we know that an insider sold shares at around the present share price of US$68.75. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Procore Technologies insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:PCOR Insider Trading Volume May 27th 2024

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. Procore Technologies insiders own 7.5% of the company, currently worth about US$753m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Procore Technologies Tell Us?

Insiders sold Procore Technologies shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Procore Technologies. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Procore Technologies.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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Find out whether Procore Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.