Rubrik Insiders Selling US$3.6m In Stock Relieved As Market Cap Slides To US$11b

Insiders seem to have made the most of their holdings by selling US$3.6m worth of Rubrik, Inc. (NYSE:RBRK) stock at an average sell price of US$34.25 during the past year. The company’s market cap plunged by US$1.8b after price dropped by 16% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Rubrik

The Last 12 Months Of Insider Transactions At Rubrik

Over the last year, we can see that the biggest insider sale was by the insider, Barry Eggers, for US$3.3m worth of shares, at about US$32.74 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$51.84. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 64% of Barry Eggers's stake.

Rubrik 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!

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Rubrik Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Rubrik shares. In total, Chief Financial Officer Kiran Choudary sold US$287k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Rubrik Boast High 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. We usually like to see fairly high levels of insider ownership. It's great to see that Rubrik insiders own 20% of the company, worth about US$2.1b. 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 Rubrik Insiders?

An insider sold stock recently, but they haven't been buying. 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. 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. Our analysis shows 2 warning signs for Rubrik (1 is 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 of direct interests only, but not derivative transactions or indirect interests.

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