Anyone interested in Applied Materials, Inc. (NASDAQ:AMAT) should probably be aware that the Independent Director, Stephen Forrest, recently divested US$138k worth of shares in the company, at an average price of US$46.00 each. On the bright side, that sale was only-4.1% of their holding, so we doubt it’s very meaningful, on its own.
View our latest analysis for Applied Materials
Applied Materials Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Senior VP & CTO, Omkaram Nalamasu, for US$5.8m worth of shares, at about US$40.73 per share. That means that even when the share price was below the current price of US$48.02, an insider wanted to cash in some shares. 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. This single sale was 75.1% of Omkaram Nalamasu’s stake.
In the last twelve months insiders netted US$7.1m for 173k shares sold. In the last year Applied Materials 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!
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that Applied Materials insiders own 0.3% of the company, worth about US$148m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Applied Materials Insiders?
An insider hasn’t bought Applied Materials 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. But since Applied Materials is profitable and growing, we’re not too worried by this. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Applied Materials, you should check out this free report on analyst forecasts for the company.
But note: Applied Materials 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.
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