Don't Ignore The Insider Selling In Procore Technologies

We wouldn't blame Procore Technologies, Inc. (NYSE:PCOR) shareholders if they were a little worried about the fact that Craig Courtemanche, the Founder recently netted about US$1.6m selling shares at an average price of US$71.36. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.6%.

Check out our latest analysis for Procore Technologies

The Last 12 Months Of Insider Transactions At Procore Technologies

In fact, the recent sale by Founder Craig Courtemanche was not their only sale of Procore Technologies shares this year. Earlier in the year, they fetched US$73.90 per share in a -US$4.8m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$76.68. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 1.7% of Craig Courtemanche's holding.

In the last year Procore Technologies insiders didn't buy any company stock. 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!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Procore Technologies insiders own about US$846m worth of shares (which is 7.4% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Procore Technologies Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. 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. 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. 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.

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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.