Ribbon Communications Executive Vice President of Global Sales Dan Redington Sells 100% Of Holding

We wouldn't blame Ribbon Communications Inc. (NASDAQ:RBBN) shareholders if they were a little worried about the fact that Dan Redington, the Executive Vice President of Global Sales recently netted about US$767k selling shares at an average price of US$4.04. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

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Ribbon Communications Insider Transactions Over The Last Year

Notably, that recent sale by Dan Redington is the biggest insider sale of Ribbon Communications shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$4.05. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Ribbon Communications insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Ribbon Communications

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Does Ribbon 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.8% of Ribbon Communications shares, worth about US$20m. 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 Ribbon Communications Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Ribbon Communications.

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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.