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Insiders were net sellers of QUALCOMM Incorporated's (NASDAQ:QCOM ) stock during the past year. That is, insiders sold more stock than they bought.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for QUALCOMM
QUALCOMM Insider Transactions Over The Last Year
The insider, James Cathey, made the biggest insider sale in the last 12 months. That single transaction was for US$232k worth of shares at a price of US$145 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$110. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was James Cathey.
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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Does QUALCOMM Boast High 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. 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's great to see that QUALCOMM insiders own 0.1% of the company, worth about US$158m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The QUALCOMM Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the QUALCOMM insiders selling. 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. Every company has risks, and we've spotted 2 warning signs for QUALCOMM (of which 1 is significant!) you should know about.
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