Nutanix Independent Director Steven Gomo Sells 30% Of Holding

We wouldn’t blame Nutanix, Inc. (NASDAQ:NTNX) shareholders if they were a little worried about the fact that Steven Gomo, the Independent Director recently netted about US$1.8m selling shares at an average price of US$60.05. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we’ve seen.

Check out our latest analysis for Nutanix

The Last 12 Months Of Insider Transactions At Nutanix

The President, Rajiv Ramaswami, made the biggest insider sale in the last 12 months. That single transaction was for US$4.7m worth of shares at a price of US$33.88 each. That means that even when the share price was below the current price of US$59.06, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. It is worth noting that this sale was only 21% of Rajiv Ramaswami’s holding.

Nutanix insiders didn’t buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Nutanix

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Nutanix insiders own 0.5% of the company, worth about US$79m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Nutanix Tell Us?

An insider sold Nutanix shares recently, but they didn’t buy any. And there weren’t any purchases to give us comfort, over the last year. While insiders do own shares, they don’t own a heap, and they have been selling. We’d practice some caution before buying! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Nutanix. Be aware that Nutanix is showing 3 warning signs in our investment analysis, and 1 of those doesn’t sit too well with us…

Of course Nutanix may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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