Anyone interested in Okta, Inc. (NASDAQ:OKTA) should probably be aware that the Chief Financial Officer, William Losch, recently divested US$114k worth of shares in the company, at an average price of US$103 each. On the bright side, that sale was only 8.8% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At Okta
Over the last year, we can see that the biggest insider sale was by the Co-Founder, Jacques Kerrest, for US$127k worth of shares, at about US$80.93 per share. That means that an insider was selling shares at slightly below the current price (US$104). 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. 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. This single sale was just 1403% of Jacques Kerrest's stake.
In the last twelve months insiders netted US$241k for 2681 shares sold. Okta insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, 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 Okta better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Okta 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Okta insiders own 8.3% of the company, currently worth about US$1.0b 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 Okta Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
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