Significant Insider Buy at SentinelOne

Significant Insider Buy at SentinelOne

I usually pay no attention to insider sales, but like many others I consider insider buys much more significant because insider buys almost always mean the buyer feels the price is going to rise. In SentinelOne’s case, this was a million dollar buy by an independent director, and what especially impressed me was that he had been a CFO at two different companies, which gave me some confidence that he understood what was going on with the company’s numbers, and had confidence in them.

(Last week) insider purchase by independent director Mark Peek, who picked up 30,000 shares at an average price of $34.40 through a trust. Mr. Peek also purchased 30,000 shares last December at a much higher average price of $48.02…. Mr. Peek is currently a Managing Director at Workday ventures having previously worked as Workday’s CFO and Co-President from 2012 to 2018. Before he joined Workday (WDAY), he spent 5 years as the CFO of VMWare (VMW).

Saul

https://seekingalpha.com/article/4501850-insider-weekends-ma…

91 Likes

The counterpoint. Buying $1 million of SentinelOne might seem like a huge vote of confidence, but Mark Peek’s net worth is likely in the hundreds of millions (from a quick search). So, if his net worth is say $300 million, that’s a 0.3% buy.

Chris

5 Likes

The counterpoint. Buying $1 million of SentinelOne might seem like a huge vote of confidence, but Mark Peek’s net worth is likely in the hundreds of millions (from a quick search). So, if his net worth is say $300 million, that’s a 0.3% buy.

Hi Chris, what you say is, of course, true. But if I was privy to insider information by being on the Board of Directors, and I had reason to think, from my experience as a CFO at two different companies, that all wasn’t hunky-dory at SentinelOne, I certainly wouldn’t have made two purchases, coming to over $2 million, in the last four months (even if it was just 0.6% of my net worth).
Saul

65 Likes

I try not to ever place to much emphasis on one particular individual’s ability to value a company, but would put forth a bit more context on the Director’s experience. Prior to his CFO experience, he was also the Chief Accounting Officer at Amazon for a number of years and prior to that spent nearly 20 years in public accounting, ultimately ending up as a Partner with one of the big 4 accounting firms. Seems like he knows a little bit about the finance and accounting side of things.

xtrasauce

4 Likes

such a tiny insider purchase is only symbolic for me.

But even a really big insider buy doesn’t really mean much, see the CEO of ASANA as the best example. He has invested more than 1 billion!!! and the stock continues to fall. Who knows how many jumped on the bandwagon just because of his big purchases?!

Most insider buyers (founders or CEOs) have at least more skin in the game and see the purchases as a really long-term investment. Our one sells anyway after a few quarters (even if we are talking about an infinite holding time, see e.g. also this board as the best example)

2 Likes