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Hopeful week for insiders who might be regretting buying US$4.2m of SentinelOne, Inc. (NYSE:S) stock earlier this year

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Insiders who bought US$4.2m worth of SentinelOne, Inc. (NYSE:S) stock in the last year have seen some of their losses recouped as the stock gained 3.3% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$1.6m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for SentinelOne

SentinelOne Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Mark Peek bought US$1.4m worth of shares at a price of US$48.02 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.27). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 112.85k shares worth US$4.2m. But insiders sold 37.48k shares worth US$1.2m. Overall, SentinelOne insiders were net buyers during the last year. The average buy price was around US$37.42. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

SentinelOne is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

SentinelOne Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at SentinelOne. In total, two insiders bought US$1.3m worth of shares in that time. But we did see insider selling worth US$678k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Does SentinelOne Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that SentinelOne insiders own 2.6% of the company, worth about US$156m. 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 SentinelOne Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about SentinelOne. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SentinelOne. In terms of investment risks, we've identified 2 warning signs with SentinelOne and understanding these should be part of your investment process.

But note: SentinelOne 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.