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Over the past year, insiders sold US$3.2m worth of Analog Devices, Inc. (NASDAQ:ADI) stock at an average price of US$165 per share allowing them to get the most out of their money. The company's market worth decreased by US$3.8b over the past week after the stock price dropped 4.9%, although insiders were able to minimize their losses
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Analog Devices
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 Executive Vice President of Global Operations & Technology, Vivek Jain, sold US$2.3m worth of shares at a price of US$166 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$142. So it may not shed much light on insider confidence at current levels.
All up, insiders sold more shares in Analog Devices than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Analog Devices Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Analog Devices. Specifically, Executive Vice President of Global Operations & Technology Vivek Jain ditched US$2.3m 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Analog Devices insiders own 0.3% of the company, currently worth about US$253m 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.
So What Do The Analog Devices Insider Transactions Indicate?
An insider hasn't bought Analog Devices stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Analog Devices. For example - Analog Devices has 3 warning signs we think you should be aware of.