Insiders At Advanced Micro Devices Sold US$6.7m In Stock, Alluding To Potential Weakness

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Many Advanced Micro Devices, Inc. (NASDAQ:AMD) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Advanced Micro Devices

Advanced Micro Devices Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Forrest Norrod, sold US$3.0m worth of shares at a price of US$119 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$106). So it may not shed much light on insider confidence at current levels.

Insiders in Advanced Micro Devices didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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NasdaqGS:AMD Insider Trading Volume September 10th 2023

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Advanced Micro Devices Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Advanced Micro Devices. In total, Executive Vice President of Strategic Partnerships & President EMEA Paul Grasby dumped US$1.6m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Advanced Micro Devices insiders own 0.6% of the company, worth about US$980m. 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 Advanced Micro Devices Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Advanced Micro Devices that deserve your attention before buying any shares.