Michelangelo Volpiboard member at confluent CFLTreported a major insider sale May 9, according to a new SEC filing.
What happened: A Form 4 filing from the U.S. Securities and Exchange Commission On Tuesday it was revealed that Volpi sold 637,268 shares confluent. The total transaction was $14,657,624.
confluent Shares are trading down 3.03% at $23.13 as of this writing on Wednesday morning.
Why Insider Transactions Matter
Insider transactions should not be used primarily to make an investment decision, however an insider transaction can be an important factor in an investment decision.
Any shareholder who holds at least 10% of a company is legally referred to as an “insider”. This can include executives in the C-suite and large hedge funds. These insiders are required to notify the public of their transactions via a Form 4, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, it is an indication that they expect the price to rise.
Insider selling, on the other hand, can happen for a variety of reasons and doesn’t necessarily mean the seller thinks the stock will go down.
Important transaction codes
investors prefer to focus on transactions that occur in the open market as identified in Table I of the Form 4 filing. A P in box 3 indicates a purchase while S indicates a sale. transaction code C specifies the conversion of an option and transaction code A points out that the insider may have been forced to sell shares to receive compensation promised by the company when he was hired.
Check out Confluent’s full list of insider trades.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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