Analog insiders are selling $4.1 million worth of shares, likely signaling caution

Many over the last year Analog Devices, Inc. (NASDAQ:ADI) insiders sold significant shares of the company, which may have sparked investor interest. When assessing insider trades, knowing whether insiders are buying or selling is usually more beneficial because the latter can be open to multiple interpretations. However, shareholders should take a closer look if several insiders are selling shares during a particular period.

While we don’t believe shareholders should simply follow insider trading, logic dictates that you should pay attention to whether insiders are buying or selling shares.

See our latest analysis for analog devices

Analog insider transactions over the past year

Over the last twelve months, the largest single sale by an insider occurred when Executive Vice President of Global Operations and Technology, Vivek Jain, sold US$3.1m of stock at US$184 per share. This means that even though the stock was trading below its current price of US$233, an insider wanted to cash in on some of the stock. Generally speaking, we consider it a negative if insiders were selling, especially if they were selling below the current price, because it means they thought the lower price was reasonable. However, while insider selling is sometimes discouraging, it is only a weak signal. This single sale represented 75% of Vivek Jain’s stake.

Analog Devices insiders didn’t buy any shares of the company last year. You can see a visual representation of insider transactions (by companies and individuals) over the last 12 months below. If you click on the chart you will see all the individual trades, including the share price, unit and date!

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Analog insiders are selling shares

Over the last three months, we have seen significant insider selling at Analog Devices. In total, insiders sold shares worth PLN 930,000 during this time. dollars, and we did not record any purchases. This may suggest that some insiders think the shares are not cheap.

Confidential property of analog devices

Analyzing the total insider ownership of a company can help provide insight into whether they are well-aligned with common shareholders. We usually like a fairly high level of insider ownership. It’s great to see that Analog Devices insiders own 0.4% of the company, worth about US$430m. This type of significant insider ownership generally increases the chance that the company will be managed in the interests of all shareholders.

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So what do analog confidential transactions indicate?

Insiders have been selling shares recently, but not buying. And even if we look at the last year, we haven’t seen any purchases. The company boasts a high insider count, but we’re a bit dubious given the stock’s history of selling. So you should definitely take a look at it FREE a report showing analyst forecasts for analog devices.

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For the purposes of this article, insiders are individuals who report their transactions to the appropriate regulatory authority. We currently only include open market transactions and private dispositions of direct interests, but not derivative transactions or indirect interests.

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This article by Simply Wall St is of a general nature. We comment based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative content. Simply Wall St has no position in any of the stocks mentioned.