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Don't Ignore The Fact That This Insider Just Sold Some Shares In Cornerstone OnDemand, Inc. (NASDAQ:CSOD)

Simply Wall St

We wouldn't blame Cornerstone OnDemand, Inc. (NASDAQ:CSOD) shareholders if they were a little worried about the fact that Adam Miller, the Founder recently netted about US$1.1m selling shares at an average price of US$53.02. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.6%.

Check out our latest analysis for Cornerstone OnDemand

Cornerstone OnDemand Insider Transactions Over The Last Year

Notably, that recent sale by Adam Miller is the biggest insider sale of Cornerstone OnDemand shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$53.89, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 0.6% of Adam Miller's stake.

We note that in the last year insiders divested 75550 shares for a total of US$4.2m. Insiders in Cornerstone OnDemand didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:CSOD Recent Insider Trading, October 9th 2019

I will like Cornerstone OnDemand better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Cornerstone OnDemand

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Cornerstone OnDemand insiders own 6.6% of the company, currently worth about US$216m 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 Does This Data Suggest About Cornerstone OnDemand Insiders?

An insider sold Cornerstone OnDemand shares recently, but they didn't buy any. And even if we look to 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. Of course, the future is what matters most. So if you are interested in Cornerstone OnDemand, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.