We wouldn't blame VeriSign, Inc. (NASDAQ:VRSN) shareholders if they were a little worried about the fact that D. Bidzos, the Executive Chairman of the Board & CEO recently netted about US$3.1m selling shares at an average price of US$209. However, that sale only accounted for 2.8% of their holding, so arguably it doesn't say much about their conviction.
See our latest analysis for VeriSign
The Last 12 Months Of Insider Transactions At VeriSign
In fact, the recent sale by D. Bidzos was the biggest sale of VeriSign shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$214, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.8%of D. Bidzos's holding.
In the last year VeriSign insiders didn't buy any company stock. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of VeriSign
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. VeriSign insiders own 0.9% of the company, currently worth about US$185m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The VeriSign Insider Transactions Indicate?
Insiders sold VeriSign shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for VeriSign (1 is concerning!) that we believe deserve your full attention.
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.