We wouldn't blame Analog Devices, Inc. (NASDAQ:ADI) shareholders if they were a little worried about the fact that Joseph Hassett, the Senior Vice President of Global Operations & Technology recently netted about US$1.2m selling shares at an average price of US$117. That sale reduced their total holding by 47.5% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Analog Devices
In the last twelve months, the biggest single sale by an insider was when the Founder & Chairman, Raymond Stata, sold US$2.2m worth of shares at a price of US$108 per share. That means that even when the share price was below the current price of US$116, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 230% of Raymond Stata's holding.
Over the last year, we note insiders sold 116387 shares worth US$12m. Insiders in Analog Devices didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Analog Devices insiders own 0.3% of the company, currently worth about US$147m based on the recent share price. 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 Analog Devices Tell Us?
Insiders sold Analog Devices shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Analog Devices makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Analog Devices.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.