In This Article:
Over the past year, many Synopsys, Inc. (NASDAQ:SNPS) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. 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, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Synopsys
Synopsys Insider Transactions Over The Last Year
The Lead Independent Director, Roy Vallee, made the biggest insider sale in the last 12 months. That single transaction was for US$5.7m worth of shares at a price of US$573 each. So what is clear is that an insider saw fit to sell at around the current price of US$558. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year we saw more insider selling of Synopsys shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Synopsys better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Synopsys
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 Synopsys insiders own 0.6% of the company, worth about US$503m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Synopsys Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Synopsys, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Synopsys, you should check out this free report on analyst forecasts for the company.