WANdisco is a UK-based technology company that specialises in data management. The company offers a range of products that solve critical data management challenges across cloud computing, big data, and source code management markets, and serves customers both in North America and Europe. It is listed on the Alternative Investment Market (AIM) of the London Stock Exchange and currently has a market capitalisation of £300 million.
WANdisco issued a rather disappointing set of full-year results in June. For the year ended 31 December 2019, revenue declined 5% to $16.2 million while adjusted EBITDA loss increased to $11.7 million from $9.4 million last year. There were some positives from the results, however. On the plus side, cash on the balance sheet at 31 December was $23.4 million, up from $10.8 million at 31 December 2018, while debt was reduced to $2.2 million, down from $3.9 million at the end of the previous year.
Source: 2iQ Research
What has caught our attention here is the fact that WANdisco’s CFO Erik Miller recently offloaded his entire holding in WAND stock. On 2 July, the insider sold 27,124 WAND shares at a price of £6.20 per share, which resulted in a net holding of zero shares. We see this insider transaction as a bearish signal. As CFO, Miller is likely to have an excellent understanding of WANdisco’s future prospects. This selling activity suggests that he is not confident about the future.