One Zendesk, Inc. (NYSE:ZEN) insider reduced their stake by 16% in the previous year

By
Simply Wall St
Published
January 25, 2022
NYSE:ZEN
Source: Shutterstock

From what we can see, insiders were net sellers in Zendesk, Inc.'s (NYSE:ZEN ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Zendesk

The Last 12 Months Of Insider Transactions At Zendesk

The Chief Operating Officer, Jeffrey Titterton, made the biggest insider sale in the last 12 months. That single transaction was for US$422k worth of shares at a price of US$141 each. 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$95.77. So it may not shed much light on insider confidence at current levels. Jeffrey Titterton was the only individual insider to sell shares in the last twelve months.

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!

insider-trading-volume
NYSE:ZEN Insider Trading Volume January 25th 2022

I will like Zendesk better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Zendesk insiders own about US$123m worth of shares (which is 1.1% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Zendesk Tell Us?

The fact that there have been no Zendesk insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Zendesk insiders selling. 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 - Zendesk has 3 warning signs we think you should be aware of.

But note: Zendesk may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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