Should Investors Be Worried About C

Latest data from GuruFocus shows that SVP & CFO Juho Parkkinen sold 1535 shares of C3.ai Inc (AI) on 2022-06-24.

Investors may be concerned when an insider sells shares. This could be a sign that insiders are turning bearish on their own company’s stock. Insiders have a unique advantage in determining the value of their business, so when they start selling, investors pay attention. Let’s take a look at this insider sale to see if C3.ai Inc deserves some skepticism from investors.

The professions of Juho Parkkinen

Over the past year, Juho Parkkinen has sold 12,780 shares in total.

This means that Juho Parkkinen sold the shares of his company over a longer period. This could actually be a positive sign for the stock, contrary to expectations. When insiders sell frequently, it may be because their company issues a lot of stock options to compensate executives. The leaders will then sell some of the new shares for cash. Of course, it’s also possible that the selloff was due to insiders becoming more bearish on the stock. Investors should be careful when evaluating insider selling.

Insider Trends

Even if an insider sells, it does not mean that other insiders are bearish on the stock. Are other insiders also selling the shares, or have the company’s top executives and owners bought more recently?

The insider trading history for C3.ai Inc shows that there were 0 total insider buying in the past year. Meanwhile, there were 31 insider selling during the same period.

Juho Parkkinen isn’t the only insider to sell shares recently; other company insiders are also selling more than they are buying, which could worry investors. However, we should keep in mind that insiders sell for many reasons, such as needing cash or taking advantage of company stock buyback plans. High insider selling can be a bad sign or a neutral sign, depending on the reasoning behind the selling.

Please note that figures and facts quoted are at the time of writing this article and may not reflect the latest business data or company announcements.

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Robert D. Coleman