We wouldn't blame Confluent, Inc. (NASDAQ:CFLT) shareholders if they were a little worried about the fact that Rohan Sivaram, the Chief Financial Officer recently netted about US$673k selling shares at an average price of US$31.96. However, that sale only accounted for 3.5% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Confluent
Notably, that recent sale by Rohan Sivaram is the biggest insider sale of Confluent 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$31.00. 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.
In the last year Confluent insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does Confluent Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Confluent insiders own about US$1.8b worth of shares (which is 17% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Confluent Insiders?
Insiders sold Confluent 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 Confluent. Every company has risks, and we've spotted 3 warning signs for Confluent you should know about.
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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.