Intuit Inc.'s (NASDAQ:INTU)) market cap declines to US$112b but insiders who sold US$22m stock were able to hedge their losses




  • In Business
  • 2022-09-27 11:01:04Z
  • By Simply Wall St.
 

Insiders at Intuit Inc. (NASDAQ:INTU) sold US$22m worth of stock at an average price of US$519 a share over the past year, making the most of their investment. After the stock price dropped 6.6% last week, the company's market value declined by US$7.9b, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, 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 we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$396. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Intuit didn't buy any shares in the last year. 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!

I will like Intuit better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders At Intuit Have Sold Stock Recently

The last quarter saw substantial insider selling of Intuit shares. 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 Of Intuit

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Intuit insiders own 2.8% of the company, worth about US$3.1b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Intuit Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Intuit has 2 warning signs we think you should be aware of.

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, 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.

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