Have GitLab Insiders Been Selling Stock?

Some GitLab Inc. (NASDAQ:GTLB) shareholders may be a little concerned to see that the Independent Director, Susan Bostrom, recently sold a substantial US$2.6m worth of stock at a price of US$52.95 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

View our latest analysis for GitLab

The Last 12 Months Of Insider Transactions At GitLab

In fact, the recent sale by Susan Bostrom was the biggest sale of GitLab shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$49.93. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in GitLab didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does GitLab Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. GitLab insiders own 17% of the company, currently worth about US$1.4b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At GitLab Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Our analysis shows 4 warning signs for GitLab (1 is a bit concerning!) and we strongly recommend you look at them before investing.

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.