Insiders probably made the right decision selling US$9.0m worth of shares earlier this year as Texas Instruments Incorporated's (NASDAQ:TXN)) stock dips by 4.5%.
Over the past year, insiders sold US$9.0m worth of Texas Instruments Incorporated (NASDAQ:TXN) stock at an average price of US$176 per share allowing them to get the most out of their money. The company's market valuation decreased by US$7.3b after the stock price dropped 4.5% over the past week, but insiders were spared from painful losses.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Texas Instruments
Texas Instruments Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman, Richard Templeton, sold US$5.9m worth of shares at a price of US$178 per share. That means that an insider was selling shares at around the current price of US$171. 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.
Insiders in Texas Instruments didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insiders At Texas Instruments Have Sold Stock Recently
The last three months saw significant insider selling at Texas Instruments. In total, Senior VP & CTO Ahmad R. S. Bahai dumped US$200k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Texas Instruments
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. It's great to see that Texas Instruments insiders own 0.1% of the company, worth about US$168m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Texas Instruments Insiders?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Texas Instruments makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Texas Instruments (including 2 which are potentially serious).
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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