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The fact that multiple Marvell Technology, Inc. (NASDAQ:MRVL) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
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.
The Last 12 Months Of Insider Transactions At Marvell Technology
Over the last year, we can see that the biggest insider sale was by the President of Products & Technologies, Muhammad Hussain, for US$12m worth of shares, at about US$80.50 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$51.70. So it may not shed much light on insider confidence at current levels.
Over the last year, we can see that insiders have bought 17.43k shares worth US$1.3m. But insiders sold 258.51k shares worth US$21m. Over the last year we saw more insider selling of Marvell Technology shares, than buying. 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!
See our latest analysis for Marvell Technology
I will like Marvell Technology 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.
Insiders At Marvell Technology Have Bought Stock Recently
Over the last quarter, Marvell Technology insiders have spent a meaningful amount on shares. We can see that Independent Director Bradley Buss paid US$207k for shares in the company. No-one sold. This makes one think the business has some good points.
Does Marvell Technology Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Marvell Technology insiders own 0.3% of the company, currently worth about US$127m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.