We'd be surprised if Twilio Inc. (NYSE:TWLO) shareholders haven't noticed that the Chief Product Officer, Eyal Manor, recently sold US$431k worth of stock at US$106 per share. On the bright side, that sale was only 2.4% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At Twilio
Over the last year, we can see that the biggest insider sale was by the insider, George Hu, for US$1.6m worth of shares, at about US$360 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$102. So it is hard to draw any strong conclusion from it.
In total, Twilio insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Twilio better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Twilio insiders own 4.4% of the company, worth about US$779m. 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 sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Twilio. For instance, we've identified 5 warning signs for Twilio (1 can't be ignored) you should be aware of.
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, but not derivative transactions.
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