Have Quantum Corporation (NASDAQ:QMCO) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
July 25, 2021
NasdaqGM:QMCO
Source: Shutterstock

Some Quantum Corporation (NASDAQ:QMCO) shareholders may be a little concerned to see that the Chairman, James Lerner, recently sold a substantial US$809k worth of stock at a price of US$6.12 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.9%.

View our latest analysis for Quantum

Quantum Insider Transactions Over The Last Year

In fact, the recent sale by James Lerner was the biggest sale of Quantum shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$6.24). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 9.9% of James Lerner's holding.

Over the last year we saw more insider selling of Quantum shares, than buying. 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
NasdaqGM:QMCO Insider Trading Volume July 25th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Quantum

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Quantum insiders own about US$19m worth of shares. That equates to 5.3% of the company. 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 Quantum Insider Transactions Indicate?

Insiders sold Quantum shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. To help with this, we've discovered 4 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Quantum.

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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This article by Simply Wall St is general in nature. 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.
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