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Many Adobe Inc. (NASDAQ:ADBE) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Adobe
Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Shantanu Narayen, for US$14m worth of shares, at about US$546 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$352. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 3.55k shares for US$1.5m. But they sold 64.26k shares for US$34m. In total, Adobe insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Adobe
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Adobe Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Adobe, over the last three months. In fact, two insiders bought US$1.5m worth of shares. But we did see Senior VP Jillian Forusz sell shares worth US$137k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Adobe insiders own about US$245m worth of shares (which is 0.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.