Independent Director Katharina McFarland Sold A Bunch Of Shares In Science Applications International

We'd be surprised if Science Applications International Corporation (NASDAQ:SAIC) shareholders haven't noticed that the Independent Director, Katharina McFarland, recently sold US$381k worth of stock at US$118 per share. That sale was 32% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Science Applications International

The Last 12 Months Of Insider Transactions At Science Applications International

Notably, that recent sale by Katharina McFarland is the biggest insider sale of Science Applications International shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$117. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 8.44k shares worth US$1.0m. On the other hand they divested 4.00k shares, for US$477k. Overall, Science Applications International insiders were net buyers during 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!

Science Applications International is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Science Applications International Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 1.0% of Science Applications International shares, worth about US$56m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Science Applications International Insiders?

The stark truth for Science Applications International is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. 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. You'd be interested to know, that we found 3 warning signs for Science Applications International and we suggest you have a look.

But note: Science Applications International 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 of direct interests only, but not derivative transactions or indirect interests.

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