We wouldn't blame Samsara Inc. (NYSE:IOT) shareholders if they were a little worried about the fact that Dominic Phillips, the Executive VP & CFO recently netted about US$1.9m selling shares at an average price of US$39.21. However, that sale only accounted for 4.1% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At Samsara

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Sanjit Biswas, for US$7.6m worth of shares, at about US$46.31 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$39.23). So it may not tell us anything about how insiders feel about the current share price.

Insiders in Samsara 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Samsara better if I see some big insider buys.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Samsara insiders own about US$8.3b worth of shares (which is 37% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Samsara Insider Transactions Indicate?

Insiders sold Samsara shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Samsara and understanding them should be part of your investment process.

Of course Samsara 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.