We wouldn't blame Rapid7, Inc. (NASDAQ:RPD) shareholders if they were a little worried about the fact that Timothy Adams, the Chief Financial Officer recently netted about US$878k selling shares at an average price of US$58.56. That sale reduced their total holding by 27% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Rapid7

The Last 12 Months Of Insider Transactions At Rapid7

In the last twelve months, the biggest single sale by an insider was when the President & COO, Andrew Burton, sold US$2.0m worth of shares at a price of US$52.89 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$54.44. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 32% of Andrew Burton's stake.

Insiders in Rapid7 didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Rapid7 Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Rapid7 insiders own 1.6% of the company, worth about US$56m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Rapid7 Tell Us?

Insiders haven't bought Rapid7 stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rapid7. Every company has risks, and we've spotted 3 warning signs for Rapid7 (of which 1 doesn't sit too well with us!) you should know about.

Of course Rapid7 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.

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.