Insiders probably made the right decision selling US$2.0m worth of shares earlier this year as QUALCOMM Incorporated's (NASDAQ:QCOM)) stock dips by 5.4%.
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By selling US$2.0m worth of QUALCOMM Incorporated (NASDAQ:QCOM) stock at an average sell price of US$178 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by US$8.0b after the stock price dropped 5.4% over the past week, but insiders were spared from painful losses.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for QUALCOMM
The Last 12 Months Of Insider Transactions At QUALCOMM
In the last twelve months, the biggest single sale by an insider was when the Chief Technology Officer of Qualcomm Technologies, James Thompson, sold US$1.8m worth of shares at a price of US$183 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$125. So it may not tell us anything about how insiders feel about the current share price.
Insiders in QUALCOMM didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
Insider Ownership Of QUALCOMM
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 QUALCOMM insiders own 0.1% of the company, worth about US$154m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At QUALCOMM Tell Us?
The fact that there have been no QUALCOMM insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of QUALCOMM insider transactions don't fill us with confidence. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for QUALCOMM (1 is a bit unpleasant!) that we believe deserve your full attention.
Of course QUALCOMM may not be the best stock to buy. So you may wish to see this free collection of high quality companies.