Have Navan Insiders Been Selling Stock?

Some Navan, Inc. (NASDAQ:NAVN) shareholders may be a little concerned to see that the Co-Founder, Ariel Cohen, recently sold a substantial US$1.1m worth of stock at a price of US$21.27 per share. However, that sale only accounted for 4.7% of their holding, so arguably it doesn't say much about their conviction.

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Navan Insider Transactions Over The Last Year

The Co-Founder, Ilan Twig, made the biggest insider sale in the last 12 months. That single transaction was for US$25m worth of shares at a price of US$25.00 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$19.42). So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in Navan than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Navan

I will like Navan 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 Navan

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Navan insiders own about US$356m worth of shares (which is 7.0% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Navan Tell Us?

Insiders haven't bought Navan stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. 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 Navan. Every company has risks, and we've spotted 3 warning signs for Navan 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.