President & Chief Revenue Officer Robert J. Traube Sold A Bunch Of Shares In Zuora

We wouldn't blame Zuora, Inc. (NYSE:ZUO) shareholders if they were a little worried about the fact that Robert J. Traube, the President & Chief Revenue Officer recently netted about US$607k selling shares at an average price of US$9.64. That sale reduced their total holding by 45% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Zuora

The Last 12 Months Of Insider Transactions At Zuora

In fact, the recent sale by President & Chief Revenue Officer Robert J. Traube was not their only sale of Zuora shares this year. They previously made an even bigger sale of -US$661k worth of shares at a price of US$7.89 per share. That means that an insider was selling shares at slightly below the current price (US$9.64). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 52% of Robert J. Traube's stake.

In the last year Zuora insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Zuora Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Zuora insiders own about US$99m worth of shares. That equates to 6.9% 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 Does This Data Suggest About Zuora Insiders?

Insiders haven't bought Zuora 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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Zuora has 3 warning signs and it would be unwise to ignore them.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com