BE Semiconductor Industries N.V.'s (AMS:BESI)) market cap declines to €4.1b but insiders who sold €21m stock were able to hedge their losses

By
Simply Wall St
Published
May 09, 2022
ENXTAM:BESI
Source: Shutterstock

Over the past year, insiders sold €21m worth of BE Semiconductor Industries N.V. (AMS:BESI) stock at an average price of €70.36 per share allowing them to get the most out of their money. The company's market valuation decreased by €585m after the stock price dropped 12% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for BE Semiconductor Industries

The Last 12 Months Of Insider Transactions At BE Semiconductor Industries

Over the last year, we can see that the biggest insider sale was by the Chairman of Management Board, Richard Blickman, for €7.4m worth of shares, at about €74.16 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (€51.48). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Richard Blickman.

Richard Blickman divested 300.00k shares over the last 12 months at an average price of €70.36. 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!

insider-trading-volume
ENXTAM:BESI Insider Trading Volume May 9th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. BE Semiconductor Industries insiders own about €78m worth of shares. That equates to 1.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About BE Semiconductor Industries Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of BE Semiconductor Industries insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BE Semiconductor Industries. For example - BE Semiconductor Industries has 3 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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