8x8 Inc. is listed on the NYSE under the trading symbol 'EGHT' and is involved in selling VoIP products. Recently, it was reported that Hunter Middleton (CPO) of the 8x8 sold around $102,000 worth of company stock at the price of $5.31. In total, Mr. Hunter sold around 6.1% of his total holdings only, but a sale from the company insider doesn't send a good signal.
If we look at the insider transactions of 8x8 Inc. during the last year, the biggest sale was from David Sipes (CEO). Overall, he sold around $1.4 million worth of 8x8 shares at a price of $17.30.
In general, selling by the insiders is not a cause of concern... But when such selling is done at a lower stock price, that's when more attention is needed. When an insider starts selling the stock at a lower price, then that's an indication that they are looking for a way out or are not optimistic about the future of the company.
Another major concern was that no insider engaged in buying the company stock. Once again, this is not a good sign for the 8x8 Inc. company, which is also listed on the NYSE.
Insider ownership is when the people are working for an own company stock of the company. When a lot of insiders buy the company stock, then that's an indication that they trust the company. Furthermore, this also incentivizes the insiders to improve the long-term results of the company.
In the case of 8x8, around 1.4% of insiders own the 8x8 stock, which is worth around $7.6 million only. For a company the size of 8x8, these numbers are very poor, but it is still better than nothing.
The transaction data reveals that insiders are engaged in selling stock and are not buying it. If you look around, a lot of companies boast a high level of insider ownership. But in the case of 8x8, it seems that things are not looking impressive.
So in that sense, caution is needed as even the insiders don't seem interested in owning a piece of the 8x8!