Some Q2 Holdings, Inc. (NYSE:QTWO) shareholders may be a little concerned to see that the Founder & Executive Chairman, Robert Seale, recently sold a substantial US$749k worth of stock at a price of US$33.58 per share. However, that sale only accounted for 2.7% of their holding, so arguably it doesn't say much about their conviction.
View our latest analysis for Q2 Holdings
The Last 12 Months Of Insider Transactions At Q2 Holdings
Notably, that recent sale by Robert Seale is the biggest insider sale of Q2 Holdings shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$34.97). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. It is worth noting that this sale was only 2.7% of Robert Seale's holding.
In the last year Q2 Holdings insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Q2 Holdings insiders own about US$47m worth of shares. That equates to 2.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Q2 Holdings Insiders?
Insiders sold Q2 Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Q2 Holdings that deserve your attention before buying any shares.
But note: Q2 Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.