Anyone interested in SYNNEX Corporation (NYSE:SNX) should probably be aware that the Lead Independent Director, Dwight Steffensen, recently divested US$107k worth of shares in the company, at an average price of US$146 each. Equally important, that sale actually reduced their holding by a full 67% which hardly makes us feel bullish about the stock.
SYNNEX Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President of North American Technology Solutions, Peter Larocque, for US$830k worth of shares, at about US$115 per share. That means that an insider was selling shares at slightly below the current price (US$143). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 31% of Peter Larocque’s holding.
Insiders in SYNNEX didn’t buy any shares in the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does SYNNEX Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SYNNEX insiders own about US$692m worth of shares (which is 9.6% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About SYNNEX Insiders?
An insider hasn’t bought SYNNEX stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. But since SYNNEX is profitable and growing, we’re not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Of course, the future is what matters most. So if you are interested in SYNNEX, you should check out this free report on analyst forecasts for the company.
But note: SYNNEX may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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