Some CrowdStrike Holdings, Inc. (NASDAQ:CRWD) shareholders may be a little concerned to see that the Co-Founder, George Kurtz, recently sold a substantial US$8.4m worth of stock at a price of US$481 per share. However, that sale only accounted for 0.8% of their holding, so arguably it doesn't say much about their conviction.
Notably, that recent sale by Co-Founder George Kurtz was not the only time they sold CrowdStrike Holdings shares this year. They previously made an even bigger sale of -US$25m worth of shares at a price of US$451 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$477. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 2.4% of George Kurtz's stake.
Insiders in CrowdStrike Holdings didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for CrowdStrike Holdings
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. CrowdStrike Holdings insiders own 1.7% of the company, currently worth about US$2.0b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
Insiders sold CrowdStrike Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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 CrowdStrike Holdings. While conducting our analysis, we found that CrowdStrike Holdings has 1 warning sign and it would be unwise to ignore this.
Of course CrowdStrike Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.