Pegasystems COO & CFO Kenneth Stillwell Sells 29% Of Holding

We wouldn't blame Pegasystems Inc. (NASDAQ:PEGA) shareholders if they were a little worried about the fact that Kenneth Stillwell, the COO & CFO recently netted about US$1.4m selling shares at an average price of US$35.77. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.

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Pegasystems Insider Transactions Over The Last Year

In fact, the recent sale by COO & CFO Kenneth Stillwell was not their only sale of Pegasystems shares this year. They previously made an even bigger sale of -US$2.0m worth of shares at a price of US$44.81 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$36.84. So it is hard to draw any strong conclusion from it.

Insiders in Pegasystems didn't buy any shares in 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!

View our latest analysis for Pegasystems

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Does Pegasystems Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Pegasystems insiders own about US$3.0b worth of shares (which is 48% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Pegasystems Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Pegasystems is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pegasystems. Every company has risks, and we've spotted 1 warning sign for Pegasystems you should know about.

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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.