Investors can learn a lot by following the behavior of company insiders when it comes to how they handle positions in their own company. People may sell for many reasons (buying a house, paying for college, or getting ready for retirement). They generally only buy for one reason: they think they will make more money.
The chief executive officer is often one of the largest and best-informed shareholders in any corporation. Let’s see whether Procore Technologies Inc. (NYSE: PCOR) CEO Craig Courtemanche has been increasing or decreasing his shares over the past year and whether he knows something we don’t.
What You Need to Know About Procore Technologies
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Procore Technologies provides a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects.
Its Preconstruction offering facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project.
Project Management enables real-time collaboration, information storage, design, building information model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides workforce management that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communicate with workforces, and manage profitability on construction projects.
Financial Management provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real time.
The company serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. It allows users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team.
Procore Technologies was incorporated in 2002 and is headquartered in Carpinteria, California. Autodesk Inc. (NASDAQ: ADSK) is a competitor. Courtemanche has been chief executive since the company’s founding and is also the chair of the board of directors.
The company reported about $892 million in revenue and has a market capitalization of more than $10.1 billion. The stock has been on a rollercoaster over the past year but ended it almost 26% higher. The S&P 500 saw a gain of around 19% in that time. However, the stock is changing hands 20% or so lower since its initial public offering in 2021.
How Procore’s CEO Is Trading
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One year ago, Courtemanche owned less than 5.8 million shares, worth about $284.8 million. Today, he owns over 4.1 million shares, which is a stake of about 3%. Despite that 1.6 million share decrease in the total, the share price gain boosted the value of the stake by over 11% to almost $317.4 million.
| Shares a Year Ago | Shares Today | % Change |
| 5,757,975 | 4,167,941 | −27.61% |
CEO Craig Courtemanche could have sold for a variety of reasons, and we may never know the truth. Shares have traded below the IPO price for more than two years. So, it’s not hard to interpret these sales as a potential lack of confidence. Do Courtemanche and the other selling insiders know something we don’t? The company’s fiscal first-quarter earnings report is due soon. Insiders are typically prohibited from buying or selling shares until after quarterly results are released. Any insider transactions that take place after the report could provide a further clue to what Courtemanche and other insiders think about the stock’s prospects.
Other internal shareholders to watch include Director William Griffith. He owns 1.2% of shares outstanding, which is worth about $121.1 million. Divesh Makan owns 1.1% of shares outstanding, worth about $113.7 million, while Director Kevin J. O’Connor owns less than 1.1% of shares outstanding, worth about $112.0 million. Note that all three have sold shares recently. (These 19 executives pay themselves over $150 million a year.)
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