Archie C Black, CEO at Sps Commerce (NASDAQ:SPSC), made a large buy and sell of company shares on November 11, according to a new SEC filing.

Following the transaction, Black still owns 65,801 shares of Sps Commerce worth $9,682,946.

Sps Commerce shares are trading up 0.4% at $147.16 at the time of this writing on Monday morning.

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Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

Check Out The Full List Of Sps Commerce's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.