Some Crexendo, Inc. (NASDAQ:CXDO) shareholders may be a little concerned to see that the Chairman Emeritus, Steven Mihaylo, recently sold a substantial US$17m worth of stock at a price of US$10.38 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Crexendo

Notably, that recent sale by Steven Mihaylo is the biggest insider sale of Crexendo shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$8.93. So it may not shed much light on insider confidence at current levels.

Insiders in Crexendo 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!

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Does Crexendo Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Crexendo insiders own about US$121m worth of shares (which is 41% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Crexendo Tell Us?

Insiders haven't bought Crexendo 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. But it is good to see that Crexendo 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. While conducting our analysis, we found that Crexendo has 1 warning sign and it would be unwise to ignore this.

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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.