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In the last year, multiple insiders have substantially increased their holdings of Intel Corporation (NASDAQ:INTC) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Intel
The Last 12 Months Of Insider Transactions At Intel
The Director Lip-Bu Tan made the biggest insider purchase in the last 12 months. That single transaction was for US$2.5m worth of shares at a price of US$37.92 each. We do like to see buying, but this purchase was made at well below the current price of US$44.00. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 93.88k shares worth US$3.5m. On the other hand they divested 1.00 shares, for US$32.4. In total, Intel insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Intel is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Intel Insiders Bought Stock Recently
It's good to see that Intel insiders have made notable investments in the company's shares. CEO & Director Patrick Gelsinger spent US$250k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership Of Intel
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Intel insiders own 0.05% of the company, worth about US$90m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Intel Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Intel we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Intel. Every company has risks, and we've spotted 2 warning signs for Intel you should know about.