Braze Chief Business Officer Astha Malik Sells 57% Of Holding
We wouldn't blame Braze, Inc. (NASDAQ:BRZE) shareholders if they were a little worried about the fact that Astha Malik, the Chief Business Officer recently netted about US$1.4m selling shares at an average price of US$26.39. Probably the most concerning element of the whole transaction is that the disposal amounted to 57% of their entire holding.
The Last 12 Months Of Insider Transactions At Braze
Notably, that recent sale by Astha Malik is the biggest insider sale of Braze 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$26.50. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Braze insiders didn't buy any shares over the last year. 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!
See our latest analysis for Braze
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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. Braze insiders own about US$356m worth of shares (which is 12% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Braze Insider Transactions Indicate?
An insider sold Braze shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Braze. While conducting our analysis, we found that Braze has 1 warning sign and it would be unwise to ignore this.
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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.