This Cloud Company's CEO Just Sold $1.2 Million Worth of Shares | The Motley Fool

Sumedh S Thakar, CEO & President of Qualys ( QLYS 1.26%), reported the sale of 8,500 shares following the exercise of stock options on Nov. 14, 2025, as disclosed in a SEC Form 4 filing . Transaction summary Metric Value Shares sold 8,500 Transaction value ~$1.2 million Post-transaction shares 254,800 Post-transaction value (direct ownership) ~$36.6 million Transaction value based on SEC Form 4 weighted average purchase price ($142.68); post-transaction value based on Nov. 14, 2025 market close ($143.07). Key questions How does the size of this transaction compare to Sumedh S Thakar's recent insider sales? This sale of 8,500 shares exceeds the recent median insider sale of 7,000 shares from June 14, 2024 through November 14, 2025. The current transaction accounted for 3.23% of pre-transaction direct holdings, above the recent median of 1.95% per sale. What is the context of this transaction regarding derivative activity? The Form 4 filing indicates the sale was linked to the exercise of 6,500 stock options, with the exercised shares immediately sold in the open market. This structure suggests that the sale was primarily driven by option exercise and liquidity realization rather than a shift in long-term direct holdings strategy. What is the impact on Sumedh S Thakar's direct ownership? After this transaction, direct holdings decreased to 254,800 shares, valued at approximately $36.6 million as of the Nov. 14, 2025 market close. This represents a reduction of 3.23% in direct share count from the previous reported level. How does the sale align with recent price performance and market conditions? Shares were sold at a weighted average price of $142.68, with the market closing at $143.57 on the transaction date. As of Nov. 14, 2025, the stock had declined 3.9% over the prior year, and the current price as of November 21, 2025 stands at $143.07, slightly above the transaction price of $142.68. Company overview Metric Value Price (as of market close 11/14/25) $142.68 Market capitalization $5.01 billion Revenue (TTM) $653.03 million Net income (TTM) $189.14 million * 1-year performance is calculated using November 14, 2025 as the reference date. Company snapshot Offers a suite of cloud-based IT, security, and compliance solutions, including vulnerability management, threat protection, and cloud security assessment, primarily through the Qualys Cloud Platform. Generates revenue via direct sales and channel partners, licensing its software-as-a-service (SaaS) platform to enterprises, government entities, and SMBs on a subscription basis. Serves a diversified client base across industries such as financial services, healthcare, manufacturing, retail, and government, targeting organizations with complex security and compliance needs. Qualys is a leading provider of cloud-based security and compliance solutions, enabling organizations to identify, manage, and remediate IT vulnerabilities at scale. The company's SaaS platform integrates asset discovery, vulnerability management, and compliance monitoring, supporting customers' evolving cybersecurity requirements. Qualys leverages its unified platform and global reach to maintain a competitive position in the cybersecurity software market. NASDAQ: QLYS Key Data Points Foolish take Thakar's 8,500-share sale was part of a routine stock option execution, in which 6,500 shares were vested and...

Preview: ~500 words