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Don't Ignore The Insider Selling In LiveRamp Holdings

Simply Wall St ·  Nov 17, 2023 13:49

Some LiveRamp Holdings, Inc. (NYSE:RAMP) shareholders may be a little concerned to see that the Executive VP, Gerald Jones, recently sold a substantial US$662k worth of stock at a price of US$33.09 per share. However, that sale only accounted for 9.5% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for LiveRamp Holdings

The Last 12 Months Of Insider Transactions At LiveRamp Holdings

The Consultant, Warren Jenson, made the biggest insider sale in the last 12 months. That single transaction was for US$699k worth of shares at a price of US$23.37 each. That means that even when the share price was below the current price of US$33.41, 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. This single sale was just 12% of Warren Jenson's stake.

LiveRamp Holdings insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:RAMP Insider Trading Volume November 17th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does LiveRamp Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that LiveRamp Holdings insiders own 2.7% of the company, worth about US$58m. 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 Do The LiveRamp Holdings Insider Transactions Indicate?

Insiders haven't bought LiveRamp Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LiveRamp Holdings. While conducting our analysis, we found that LiveRamp Holdings has 1 warning sign and it would be unwise to ignore this.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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