Chairman of the Managing Board Of STMicroelectronics Sold 49% Of Their Shares

We wouldn't blame STMicroelectronics N.V. (EPA:STMPA) shareholders if they were a little worried about the fact that Jean-Marc Chery, the Chairman of the Managing Board recently netted about €1.9m selling shares at an average price of €38.50. That's a big disposal, and it decreased their holding size by 49%, which is notable but not too bad.

See our latest analysis for STMicroelectronics

The Last 12 Months Of Insider Transactions At STMicroelectronics

Notably, that recent sale by Jean-Marc Chery is the biggest insider sale of STMicroelectronics shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of €37.49. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year STMicroelectronics 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of STMicroelectronics

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at STMicroelectronics, though insiders do hold about €37.5 worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. This level of insider ownership is notably low, and not very encouraging.

So What Do The STMicroelectronics Insider Transactions Indicate?

An insider sold STMicroelectronics shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for STMicroelectronics that deserve your attention before buying any shares.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.