Chief Operating Officer Jessica Hertz Sold A Bunch Of Shares In Shopify
Some Shopify Inc. (NASDAQ:SHOP) shareholders may be a little concerned to see that the Chief Operating Officer, Jessica Hertz, recently sold a substantial US$1.6m worth of stock at a price of US$155 per share. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Shopify
In fact, the recent sale by Chief Operating Officer Jessica Hertz was not their only sale of Shopify shares this year. They previously made an even bigger sale of -US$6.7m worth of shares at a price of US$163 per share. So we know that an insider sold shares at around the present share price of US$153. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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.
Insiders in Shopify didn't buy any shares in 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 Shopify
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Shopify
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Shopify insiders own 6.2% of the company, currently worth about US$12b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Shopify Tell Us?
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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Shopify has 2 warning signs we think you should be aware of.
But note: Shopify may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.