We wouldn't blame Zuora, Inc. (NYSE:ZUO) shareholders if they were a little worried about the fact that Robert J. Traube, the President & Chief Revenue Officer recently netted about US$607k selling shares at an average price of US$9.64. That sale reduced their total holding by 45% which is hardly insignificant, but far from the worst we've seen.
Zuora Insider Transactions Over The Last Year
Notably, that recent sale by President & Chief Revenue Officer Robert J. Traube was not the only time they sold Zuora shares this year. Earlier in the year, they fetched US$7.89 per share in a -US$661k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$9.64. 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. It is worth noting that this sale was 52% of Robert J. Traube's holding.
In the last year Zuora insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Does Zuora Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.9% of Zuora shares, worth about US$99m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Zuora Tell Us?
Insiders haven't bought Zuora stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zuora. Case in point: We've spotted 3 warning signs for Zuora you should be aware of.
But note: Zuora 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com