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In the last year, many QUALCOMM Incorporated (NASDAQ:QCOM) insiders sold a substantial stake in the company which may have sparked shareholders' attention. 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.
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.
Check out our latest analysis for QUALCOMM
QUALCOMM Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Technology Officer of Qualcomm Technologies, James Thompson, sold US$3.2m worth of shares at a price of US$113 per share. So what is clear is that an insider saw fit to sell at around the current price of US$108. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in QUALCOMM didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like QUALCOMM better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
QUALCOMM Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at QUALCOMM. In total, Chief Technology Officer of Qualcomm Technologies James Thompson sold US$3.2m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of QUALCOMM
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.07% of QUALCOMM shares, worth about US$80m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About QUALCOMM Insiders?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for QUALCOMM that deserve your attention before buying any shares.