We wouldn't blame Micron Technology, Inc. (NASDAQ:MU) shareholders if they were a little worried about the fact that Patrick Byrne, the Independent Director recently netted about US$1.0m selling shares at an average price of US$43.27. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Micron Technology
In fact, the recent sale by Patrick Byrne was the biggest sale of Micron Technology shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$45.16, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 19%of Patrick Byrne's holding.
Over the last year, we note insiders sold 24345 shares worth US$1.1m. Micron Technology insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Micron Technology better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Micron Technology Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Micron Technology shares, worth about US$96m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Micron Technology Insider Transactions Indicate?
Insiders haven't bought Micron Technology stock in the last three months, but there was some selling. And even if we look to the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. Of course, the future is what matters most. So if you are interested in Micron Technology, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.