Some Nasdaq, Inc. (NASDAQ:NDAQ) shareholders may be a little concerned to see that the Executive VP, Bradley Peterson, recently sold a substantial US$573k worth of stock at a price of US$95.55 per share. However, that sale only accounted for 6.5% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At Nasdaq

In the last twelve months, the biggest single sale by an insider was when the President, P. C. Griggs, sold US$1.7m worth of shares at a price of US$93.96 per share. That means that an insider was selling shares at below the current price (US$95.66). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 7.6% of P. C. Griggs's holding.

Over the last year we saw more insider selling of Nasdaq shares, than buying. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Nasdaq

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Nasdaq insiders own 0.6% of the company, worth about US$339m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Nasdaq Insider Transactions Indicate?

Insiders haven't bought Nasdaq stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Nasdaq is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Nasdaq has 2 warning signs we think you should be aware of.

But note: Nasdaq 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 of direct interests only, but not derivative transactions or indirect interests.

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.