Australia markets open in 7 hours 10 minutes
  • ALL ORDS

    7,442.00
    +23.40 (+0.32%)
     
  • AUD/USD

    0.6715
    +0.0057 (+0.86%)
     
  • ASX 200

    7,253.30
    +24.20 (+0.33%)
     
  • OIL

    78.99
    +1.75 (+2.27%)
     
  • GOLD

    1,770.80
    +15.50 (+0.88%)
     
  • BTC-AUD

    24,448.11
    +206.12 (+0.85%)
     
  • CMC Crypto 200

    387.88
    -0.84 (-0.22%)
     

Possible bearish signals as Intuit Inc. (NASDAQ:INTU) insiders disposed of US$22m worth of stock

The fact that multiple Intuit Inc. (NASDAQ:INTU) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Intuit

The Last 12 Months Of Insider Transactions At Intuit

In the last twelve months, the biggest single sale by an insider was when the insider, Laura Fennell, sold US$9.1m worth of shares at a price of US$611 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$412). So it is hard to draw any strong conclusion from it.

Intuit 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
insider-trading-volume

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Intuit Insiders Are Selling The Stock

The last three months saw significant insider selling at Intuit. In total, insider Varun Krishna sold US$1.1m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Intuit insiders own 2.8% of the company, worth about US$3.2b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Intuit Insider Transactions Indicate?

An insider hasn't bought Intuit 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Intuit you should be aware of.

Of course Intuit 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here