Don't Ignore The Fact That This Insider Just Sold Some Shares In Twilio Inc. (NYSE:TWLO)

We wouldn't blame Twilio Inc. (NYSE:TWLO) shareholders if they were a little worried about the fact that George Hu, the Chief Operating Officer recently netted about US$1.6m selling shares at an average price of US$357. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

See our latest analysis for Twilio

Twilio Insider Transactions Over The Last Year

In fact, the recent sale by Chief Operating Officer George Hu was not their only sale of Twilio shares this year. Earlier in the year, they fetched US$436 per share in a -US$3.3m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$341). So it may not shed much light on insider confidence at current levels.

In the last year Twilio 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!

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Insider Ownership of Twilio

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Twilio insiders own about US$2.8b worth of shares (which is 4.6% 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.

So What Do The Twilio Insider Transactions Indicate?

Insiders haven't bought Twilio stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For example, Twilio has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Of course Twilio 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, 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.
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