Founders Of Tableau Software Just Sold $66 Million Worth Of Stock

Tableau Software insiders have sold $66.6 million worth of stock since Tuesday. It's worth taking a closer look at the company with the stock trading at such a rich valuation.

Insider Selling: Tableau Software

A number of insiders have been selling shares of Tableau Software (NYSE: DATA) according to recent form 4 filings. Since August 9th, executives and directors have sold a total of $214.6 million worth of stock which represents 3.4% of the company's total market capitalization.

However, yesterday's form 4 filing by Pat Hanrahan (Co-Founder, Chief Scientist and Director) and Christian Chabot (Co-Founder and Chairman) notably caught my eye. The two co-founders have sold a total of $66.6 million worth of stock since Tuesday which is approximately 1.1% of Tableau Software's total market capitalization.

Recent Tableau Software, Inc. Insider Transactions
Insider Trading Relationship Date #Shares Value ($)
Pat Hanrahan Co-Founder, Chief Scientist and Director Feb 07 200,000 $15,713,545
Pat Hanrahan Co-Founder, Chief Scientist and Director Feb 06 200,000 $15,686,639
Christian Chabot Co-Founder and Chairman Feb 06 450,000 $35,203,943
    TOTAL 850,000 $66,604,127

These large trades propelled me to take a closer look at the company.

Potential Reasons For Insider Activity

Tableau Software provides business analytics software products and was founded in 2003. Management of the company reported Q4'17 earnings on February 1st that easily beat Wall Street estimates. This led to a number of equity analysts either upgrading their rating or raising their target price on the stock. Shares immediately soared and hit a two-year high.

Management obviously wants to cash in on this and take some chips off the table as highlighted by the recent selling activity. But does this signal that management is less confident in the company's future prospects?

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Disclosure: As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.

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