Yahoo Finance Trade Alert: The Independent Non-Employee Director Of Yext, Inc. (NYSE:YEXT), Julie Richardson, Has Just Spent US$61k Buying 24% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Yext, Inc. (NYSE:YEXT) Independent Non-Employee Director, Julie Richardson, recently bought US$61k worth of stock, for US$6.13 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 24%.
View our latest analysis for Yext
Yext Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Chairman of the Board Michael Walrath bought US$280k worth of shares at a price of US$5.60 per share. Even though the purchase was made at a significantly lower price than the recent price (US$6.36), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 119.17k shares for US$682k. On the other hand they divested 20.00k shares, for US$99k. Overall, Yext insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Yext 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. Yext insiders own about US$63m worth of shares. That equates to 8.1% 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.
What Might The Insider Transactions At Yext Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Yext insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Yext that deserve your attention before buying any shares.
But note: Yext 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, but not derivative transactions.
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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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