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This Insider Has Just Sold Shares In VMware, Inc. (NYSE:VMW)

Simply Wall St

Some VMware, Inc. (NYSE:VMW) shareholders may be a little concerned to see that the Executive Vice President of Worldwide Sales & Services, Maurizio Carli, recently sold a whopping US$1.7m worth of stock at a price of US$156 per share. That's a big dump, and it decreased their holding size by 15%, which is notable but not too bad.

See our latest analysis for VMware

VMware Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Michael Brown, for US$5.6m worth of shares, at about US$160 per share. So what is clear is that an insider saw fit to sell at around the current price of US$152. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we note insiders sold 167812 shares worth US$28m. VMware insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:VMW Recent Insider Trading, October 16th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does VMware Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. VMware insiders own about US$230m worth of shares (which is 0.4% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At VMware Tell Us?

An insider sold VMware 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 VMware is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.