U.S. Markets closed

Don't Ignore The Fact That This Insider Just Sold Some Shares In Seagate Technology plc (NASDAQ:STX)

Simply Wall St

Some Seagate Technology plc (NASDAQ:STX) shareholders may be a little concerned to see that the Executive Chairman, Stephen Luczo, recently sold a whopping US$5.8m worth of stock at a price of US$58.03 per share. However, that sale only accounted for 9.6% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Seagate Technology

The Last 12 Months Of Insider Transactions At Seagate Technology

Notably, that recent sale by Stephen Luczo is the biggest insider sale of Seagate Technology shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$58.12). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 9.6% of Stephen Luczo's holding.

Over the last year, we note insiders sold 354491 shares worth US$18m. Seagate Technology insiders didn't buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:STX Recent Insider Trading, November 8th 2019

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Seagate Technology Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Seagate Technology insiders own 0.6% of the company, worth about US$95m. 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 Seagate Technology Insider Transactions Indicate?

An insider sold Seagate Technology shares recently, but they didn't buy any. And even if we look to the last year, we didn't see any purchases. But since Seagate Technology is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd think twice before buying! Of course, the future is what matters most. So if you are interested in Seagate Technology, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.