Anyone interested in FireEye, Inc. (NASDAQ:FEYE) should probably be aware that the Executive Vice President of Worldwide Sales, William Robbins, recently divested US$106k worth of shares in the company, at an average price of US$16.93 each. However, the silver lining is that the sale only reduced their total holding by 5.8%, so we’re hesitant to read anything much into it, on its own.
FireEye Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President, Travis Reese, sold US$1.7m worth of shares at a price of US$16.71 per share. That means that an insider was selling shares at below the current price (US$16.94). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 8.6% of Travis Reese’s stake.
In the last twelve months insiders netted US$5.3m for 323432.73 shares sold. In the last year FireEye insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like FireEye better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does FireEye Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that FireEye insiders own 2.6% of the company, worth about US$93m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About FireEye Insiders?
An insider hasn’t bought FireEye stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for FireEye.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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