Mark Garrett, Insider at Snowflake SNOW, made a large buy and sell of company shares on November 16, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Mark Garrett exercised options to purchase 76,500 Snowflake shares at a price of $3.74 per share for a total of $286,110 on November 16. They then sold their shares on the same day in the open market. They sold at prices ranging from $398.00 to $403.30 to raise a total of $33,244,747 from the stock sale.
Garrett still owns a total of 122,365 shares of Snowflake worth, $48,519,557.00.
Snowflake shares are trading down 0.23% at $396.51 at the time of this writing on Friday morning.
The Importance of Insider Transactions
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.
Important Transaction Codes
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.