Have Insiders Been Selling Vishay Intertechnology, Inc. (NYSE:VSH) Shares?
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Vishay Intertechnology, Inc. (NYSE:VSH), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Check out our latest analysis for Vishay Intertechnology
The Last 12 Months Of Insider Transactions At Vishay Intertechnology
In the last twelve months, the biggest single sale by an insider was when Independent Director Thomas Wertheimer sold US$296k worth of shares at a price of US$19.70 per share. That means that an insider was selling shares at around the current price of US$17.34. They might be selling for a variety of reasons, but it’s hard to argue this is a bullish sign. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment.
Over the last year, we note insiders sold 33.52k shares worth US$682k. Over the last year we saw more insider selling of Vishay Intertechnology shares, than buying. The average sell price was around US$20.36. It’s not particularly great to see insiders were selling shares around current prices. But we don’t put too much weight on the insider selling, since sellers could have personal reasons. You can see the insider transactions over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Vishay Intertechnology Insiders Are Selling The Stock
The last three months saw significant insider selling at Vishay Intertechnology. In total, insiders dumped US$367k worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.
Does Vishay Intertechnology Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Vishay Intertechnology insiders own 1.0% of the company, currently worth about US$25m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Vishay Intertechnology Tell Us?
Insiders haven’t bought Vishay Intertechnology 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. We’re in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Vishay Intertechnology.
But note: Vishay Intertechnology 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
