Shopify Chief Operating Officer Jessica Hertz Sells 95% Of Holding

Some Shopify Inc. (NASDAQ:SHOP) shareholders may be a little concerned to see that the Chief Operating Officer, Jessica Hertz, recently sold a substantial US$6.7m worth of stock at a price of US$163 per share. That diminished their holding by a very significant 95%, which arguably implies a strong desire to reallocate capital.

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Shopify Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Kasra Nejatian, sold US$12m worth of shares at a price of US$153 per share. That means that even when the share price was below the current price of US$160, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was only 40% of Kasra Nejatian's holding.

Shopify insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Shopify

I will like Shopify 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 Shopify

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Shopify insiders own 6.2% of the company, worth about US$13b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Shopify Tell Us?

Insiders sold Shopify shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Shopify makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shopify. You'd be interested to know, that we found 2 warning signs for Shopify and we suggest you have a look.

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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.