BILL.com Insider Sales

Investment Analysis Clubs Saul’s Investing Discussions
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First post - recently retired - joined the board in 1Q - primarily invested in large funds - decided to set aside a small portion of portfolio for individual stock picks when I came across this discussion and bought the picks noted on this board (and several outside the focus here). I really appreciate the interesting and insightful discussion!

Perhaps a bit OT but thought it worthwhile to share noteworthy info on significant insider sales by BILL corporate officers. Obviously insiders sell for many logical reasons but I found the CRO sales kind of alarming.

Blake Thomas Murray, Chief Revenue Officer, on August 28, 2022, sold 95,826 shares in Bill.com Holdings (BILL) for $15,737,203. Following the Form 4 filing with the SEC, Murray has control over a total of 116,124 shares of the company, with 116,124 shares held directly. The market value of the direct and indirect holding, based on the transaction price, is approximately $19,556,896.
SEC Filing: https://www.sec.gov/Archives/edgar/data/1786352/000120919122…

Rene A. Lacerte, Director, President and CEO, on August 28, 2022, sold 6,537 shares in Bill.com Holdings (BILL) for $1,073,552. Following the Form 4 filing with the SEC, Lacerte has control over a total of 2,592,473 shares of the company, with 82,474 shares held directly and 2,509,999 controlled indirectly. The market value of the direct and indirect holding, based on the transaction price, is approximately $436,608,489.SEC Filing: https://www.sec.gov/Archives/edgar/data/1786352/000120919122…

Bora Chung, Chief Experience Officer, on August 28, 2022, sold 10,912 shares in Bill.com Holdings (BILL) for $1,793,124. Following the Form 4 filing with the SEC, Chung has control over a total of 1,684 shares of the company, with 1,684 shares held directly. The market value of the direct and indirect holding, based on the transaction price, is approximately $283,609.
SEC Filing: https://www.sec.gov/Archives/edgar/data/1786352/000120919122…

Best to All!
TT

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TT, Please don’t waste our time with posts like that of insider sales. It’s really off-topic for our board.

You are telling us that the CEO, President and Director (who knows the most about the company), had roughly 2.6 million of shares, and sold 6 thousand of them! Whoop-dee-do! That’s less than a quarter of one percent of his shares. Who cares?

And if you put all three of them together, they sold about 115 thousand shares out of 2.8 million shares, or about 4% of their combined holdings. Big deal! And these guys probably get new shares every year.

Saul

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TT, you have to read the whole form. The footnote clearly indicates that the sale was to cover taxes associated with stock that had vested the previous day.

Moreover, it was only a third of his RSUs that vested. He still has twice as many waiting to vest.

Insider sales are almost always a red herring.

Softie
No position in BILL

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SEC Filing: https://www.sec.gov/Archives/edgar/data/1786352/000120919122…

That’s not ‘Insider Sales!’ The fellow is exercising his stock option!

Learn to read SEC filings. Murray received 211,950 shares, sold 95,826 to pay his income tax on the shares, and kept 116,124 shares.

Explanation of Responses:

1. Each Restricted Stock Unit (“RSU”) represents a contingent right to receive one share of the Issuer’s Common Stock.

2. The sale of shares is for the sole purpose of covering the Reporting Person’s tax liability with respect to the settlement of RSUs.

Denny Schlesinger

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After >30 years in corporate tech, including last 10 in C-suite, I can tell you for sure it is indeed a big deal / red flag when…

Well TT, after >30 years of successful investing, I can tell you that no one with any sense pays attention to insider sales. People sell for all kinds of reasons. What to look for is usually insider buys. People only buy because they think the price is going up. Just look back 15 years or so when Amazon was at a tiny fraction of today’s price. There were multiple, multiple, insider sales each and every month for the entire last 15 years of price rise.

And TT, after >8 years of running this board, I can tell you that when someone new, with no significant posts on the entire MF, suddenly shows up near the bottom to diss one or more of our stocks (with nothing but “good intentions”), he almost always turns out to be a troll or short. And these guys almost always show up right near the bottom of a stock price descent telling us we should sell at the bottom. Doesn’t mean that that is you. Just what has turned out in the past.

And your posts are OT for our board. If you don’t desist, you will end up being banned from the board, and even ejected from the entire MF. (It has happened to others).

Saul

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That’s not ‘Insider Sales!’ The fellow is exercising his stock option!

Learn to read SEC filings. Murray received 211,950 shares, sold 95,826 to pay his income tax on the shares, and kept 116,124 shares.

Thanks Denny, great explanation.

Saul

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