Anyone interested in F5 Networks, Inc. (NASDAQ:FFIV) should probably be aware that the Non-Executive Chairman, Alan Higginson, recently divested US$224k worth of shares in the company, at an average price of US$133 each. That sale was 14.6% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At F5 Networks
Over the last year, we can see that the biggest insider sale was by the Director, Deborah Bevier, for US$460k worth of shares, at about US$181 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$142). So it may not shed much light on insider confidence at current levels.
We note that in the last year insiders divested 4488 shares for a total of US$719k. F5 Networks insiders didn’t buy any shares over the last year. You can see a visual depiction of insider transactions (by 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!
Does F5 Networks Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that F5 Networks insiders own 0.3% of the company, worth about US$23m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At F5 Networks Tell Us?
Insiders sold F5 Networks shares recently, but they didn’t buy any. And there weren’t any purchases to give us comfort, over the last year. But it is good to see that F5 Networks is growing earnings. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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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