Investors may wish to note that the Senior VP of Shopify Inc., Joseph Frasca, recently netted US$87k from selling stock, receiving an average price of US$313. It wasn’t a huge sale, but it did reduce their holding by 12%. This does not instill confidence.
The Last 12 Months Of Insider Transactions At Shopify
Over the last year, we can see that the biggest insider sale was by the Independent Director, Jeremy Levine, for US$10m worth of shares, at about US$265 per share. That means that an insider was selling shares at slightly below the current price (US$341). 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. 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. This single sale was just 35% of Jeremy Levine’s stake.
We note that in the last year insiders divested 65931 shares for a total of US$17m. Insiders in Shopify didn’t buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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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. Shopify insiders own 10% of the company, currently worth about US$4.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Shopify Insider Transactions Indicate?
Insiders haven’t bought Shopify stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Shopify.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.