Trade Alert: President & Chief Revenue Officer Of Zuora Robert J. Traube Has Sold Stock

We'd be surprised if Zuora, Inc. (NYSE:ZUO) shareholders haven't noticed that the President & Chief Revenue Officer, Robert J. Traube, recently sold US$471k worth of stock at US$8.61 per share. In particular, we note that the sale equated to a 52% reduction in their position size, which doesn't exactly instill confidence.

View 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 even when the share price was below the current price of US$8.50, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 52% of Robert J. Traube's holding.

Insiders in Zuora didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Zuora Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Zuora insiders own 6.3% of the company, worth about US$79m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Zuora Insider Transactions Indicate?

Insiders sold Zuora shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zuora. For example - Zuora has 3 warning signs we think you should be aware of.

Of course Zuora 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.

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

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.