President of Robotics & Discrete Automation Business Sami Atiya Sold A Bunch Of Shares In ABB

We wouldn't blame ABB Ltd (VTX:ABBN) shareholders if they were a little worried about the fact that Sami Atiya, the President of Robotics & Discrete Automation Business recently netted about CHF1.6m selling shares at an average price of CHF53.68. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At ABB

The Independent Chairman of the Board, Peter Voser, made the biggest insider sale in the last 12 months. That single transaction was for CHF1.7m worth of shares at a price of CHF48.09 each. So it's clear an insider wanted to take some cash off the table, even below the current price of CHF54.10. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 15% of Peter Voser's holding.

In the last year ABB insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of ABB

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. ABB insiders own about CHF103m worth of shares (which is 0.1% 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 Do The ABB Insider Transactions Indicate?

Insiders sold ABB shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, ABB makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for ABB and we suggest you have a look.

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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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.