SentinelOne Co-Founder Tomer Weingarten Sells 42% Of Holding

We wouldn't blame SentinelOne, Inc. (NYSE:S) shareholders if they were a little worried about the fact that Tomer Weingarten, the Co-Founder recently netted about US$880k selling shares at an average price of US$22.80. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At SentinelOne

Notably, that recent sale by Co-Founder Tomer Weingarten was not the only time they sold SentinelOne shares this year. They previously made an even bigger sale of -US$2.0m worth of shares at a price of US$21.15 per share. That means that even when the share price was below the current price of US$22.16, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Tomer Weingarten's holding.

Over the last year we saw more insider selling of SentinelOne shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does SentinelOne 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. I reckon it's a good sign if insiders own a significant number of shares in the company. SentinelOne insiders own about US$160m worth of shares (which is 2.3% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At SentinelOne Tell Us?

Insiders haven't bought SentinelOne stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - SentinelOne has 3 warning signs we think you should be aware of.

Of course SentinelOne may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.