Some Silicom Ltd. (NASDAQ:SILC) shareholders may be a little concerned to see that insider Zohar Zisapel recently sold a whopping US$3.0m worth of stock at a price of US$38.30 per share. That's a big dump, and it decreased their holding size by 11%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Silicom
In fact, the recent sale by insider Zohar Zisapel was not their only sale of Silicom shares this year. Earlier in the year, they fetched US$44.87 per share in a -US$12.8m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$30.58). So it may not tell us anything about how insiders feel about the current share price.
Zohar Zisapel sold a total of 363599 shares over the year at an average price of US$43.44. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Silicom insiders own about US$29m worth of shares. That equates to 13% of the company. 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 Silicom Insider Transactions Indicate?
An insider hasn't bought Silicom stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Silicom makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! Of course, the future is what matters most. So if you are interested in Silicom, you should check out this free report on analyst forecasts for the company.
But note: Silicom may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 email@example.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.