We’d be surprised if Quotient Technology Inc. (NYSE:QUOT) shareholders haven’t noticed that the Independent Director, Michelle McKenna-Doyle, recently sold US$156k worth of stock at US$11.83 per share. Equally important, that sale actually reduced their holding by a full 56% which hardly makes us feel bullish about the stock.
Check out our latest analysis for Quotient Technology
Quotient Technology Insider Transactions Over The Last Year
Notably, that recent sale by Michelle McKenna-Doyle is the biggest insider sale of Quotient Technology shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$12.11. 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. 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. We note that the biggest single sale was 56% of Michelle McKenna-Doyle’s holding.
Andrew Gessow purchased 20.00k shares over the year. The average price per share was US$10.10. 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!
NYSE:QUOT Insider Trading Volume May 16th 2021
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Quotient Technology Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 5.8% of Quotient Technology shares, worth about US$65m. 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 Quotient Technology Insider Transactions Indicate?
Insider selling has just outweighed insider buying in the last three months. But the difference isn’t enough to have us worried. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Quotient Technology and their transactions don’t cause us concern. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Quotient Technology. Every company has risks, and we’ve spotted 2 warning signs for Quotient Technology you should know about.
But note: Quotient Technology 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, but not derivative transactions.
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