Anyone interested in Sprinklr, Inc. (NYSE:CXM) should probably be aware that the Chief Financial Officer, Manish Sarin, recently divested US$254k worth of shares in the company, at an average price of US$9.37 each. The eyebrow raising move amounted to a reduction of 24% in their holding.

Sprinklr Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, R. David Tabors, for US$3.9m worth of shares, at about US$12.10 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$9.10. So it is hard to draw any strong conclusion from it.

In the last year Sprinklr 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!

I will like Sprinklr better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Sprinklr

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sprinklr insiders own 23% of the company, currently worth about US$534m 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.

So What Do The Sprinklr Insider Transactions Indicate?

Insiders haven't bought Sprinklr stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Sprinklr is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. Case in point: We've spotted 1 warning sign for Sprinklr you should be aware of.

Of course Sprinklr may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.