We wouldn't blame Matterport, Inc. (NASDAQ:MTTR) shareholders if they were a little worried about the fact that Raymond Pittman, the Chairman & CEO recently netted about US$582k selling shares at an average price of US$2.69. However, that sale only accounted for 6.9% of their holding, so arguably it doesn't say much about their conviction.
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The Last 12 Months Of Insider Transactions At Matterport
In fact, the recent sale by Chairman & CEO Raymond Pittman was not their only sale of Matterport shares this year. They previously made an even bigger sale of -US$715k worth of shares at a price of US$2.61 per share. So what is clear is that an insider saw fit to sell at around the current price of US$2.40. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Happily, we note that in the last year insiders paid US$371k for 150.00k shares. But insiders sold 1.88m shares worth US$5.1m. All up, insiders sold more shares in Matterport than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership Of Matterport
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Matterport insiders own about US$50m worth of shares. That equates to 6.8% 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 Do The Matterport Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. 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 Matterport. While conducting our analysis, we found that Matterport has 4 warning signs and it would be unwise to ignore them.
Of course Matterport 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.