Visteon Independent Non-Executive Chairman of the Board Francis Scricco Sells 36% Of Holding

Anyone interested in Visteon Corporation (NASDAQ:VC) should probably be aware that the Independent Non-Executive Chairman of the Board, Francis Scricco, recently divested US$492k worth of shares in the company, at an average price of US$122 each. That sale was 36% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Visteon

In the last twelve months, the biggest single sale by an insider was when the President, Sachin Lawande, sold US$606k worth of shares at a price of US$86.50 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$125. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.2% of Sachin Lawande's holding.

Insiders in Visteon didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Visteon

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Does Visteon Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.6% of Visteon shares, worth about US$54m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Visteon Insider Transactions Indicate?

Insiders haven't bought Visteon stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 3 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Visteon.

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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.