- Oops!Something went wrong.Please try again later.
John Geschke, Chief Staff at Zendesk (NYSE:ZEN), made a large buy and sell of company shares on September 7, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission reports that on September 7, John Geschke bought 3,000 Zendesk shares at a price of $27.06 per share, for a total of $81,180. They then sold their shares on the same day in the open market at prices ranging from $122.79 to $123.62 to raise a total of $370,075 from the sale.
Following the transaction, Geschke still owns 37,138 shares of Zendesk worth $4,486,270.
Zendesk shares were down at $120.8 after Thursday's closing.
The Importance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Transaction Codes To Focus On
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.