14% Of This Weave Communications Insider's Holdings Were Sold

Insiders were net sellers of Weave Communications, Inc.'s (NYSE:WEAV ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Weave Communications

Weave Communications Insider Transactions Over The Last Year

The Chief Operating Officer, Marcus Bertilson, made the biggest insider sale in the last 12 months. That single transaction was for US$604k worth of shares at a price of US$13.43 each. That means that an insider was selling shares at slightly below the current price (US$15.32). 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. It is worth noting that this sale was only 14% of Marcus Bertilson's holding. Marcus Bertilson was the only individual insider to sell over the last year.

Marcus Bertilson divested 60.00k shares over the last 12 months at an average price of US$12.74. 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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Insiders At Weave Communications Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Weave Communications. In total, Chief Operating Officer Marcus Bertilson dumped US$604k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Weave Communications Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Weave Communications insiders own about US$43m worth of shares. That equates to 3.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Weave Communications Insider Transactions Indicate?

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 shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. In terms of investment risks, we've identified 3 warning signs with Weave Communications and understanding these should be part of your investment process.

Of course Weave Communications 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.