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Chief Accounting Officer Saqib Baig Sold A Bunch Of Shares In Peloton Interactive

Simply Wall St ·  Aug 30 08:04

Anyone interested in Peloton Interactive, Inc. (NASDAQ:PTON) should probably be aware that the Chief Accounting Officer, Saqib Baig, recently divested US$244k worth of shares in the company, at an average price of US$4.88 each. That sale was 36% of their holding, so it does make us raise an eyebrow.

Peloton Interactive Insider Transactions Over The Last Year

Notably, that recent sale by Saqib Baig is the biggest insider sale of Peloton Interactive shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$4.63. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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).

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!

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NasdaqGS:PTON Insider Trading Volume August 30th 2024

I will like Peloton Interactive better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Peloton Interactive 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Peloton Interactive insiders own 2.4% of the company, worth about US$41m. 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 Peloton Interactive Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Peloton Interactive stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Peloton Interactive. Be aware that Peloton Interactive is showing 5 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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