Anyone interested in Crexendo, Inc. (NASDAQ:CXDO) should probably be aware that the Senior Vice President, David Wang, recently divested US$163k worth of shares in the company, at an average price of US$6.50 each. However, the silver lining is that the sale only reduced their total holding by 4.5%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Crexendo
Over the last year, we can see that the biggest insider sale was by the Chairman Emeritus, Steven Mihaylo, for US$17m worth of shares, at about US$10.46 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$5.93. So it may not shed much light on insider confidence at current levels.
Crexendo insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Crexendo
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Crexendo
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Crexendo insiders own about US$68m worth of shares. That equates to 35% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Crexendo Insider Transactions Indicate?
An insider hasn't bought Crexendo stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Crexendo is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Crexendo and understanding it should be part of your investment process.
But note: Crexendo 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 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.