Science Applications International Insiders Sold US$2.3m Of Shares Suggesting Hesitancy

Many Science Applications International Corporation (NASDAQ:SAIC) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Science Applications International

The Last 12 Months Of Insider Transactions At Science Applications International

The insider, Robert Genter, made the biggest insider sale in the last 12 months. That single transaction was for US$878k worth of shares at a price of US$125 each. So we know that an insider sold shares at around the present share price of US$124. 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.

Happily, we note that in the last year insiders paid US$921k for 7.61k shares. But insiders sold 18.84k shares worth US$2.3m. Over the last year we saw more insider selling of Science Applications International shares, than buying. 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!

I will like Science Applications International better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Science Applications International Have Bought Stock Recently

Over the last quarter, Science Applications International insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$430k worth of shares. This makes one think the business has some good points.

Insider Ownership Of Science Applications International

Many investors like to check how much of a company is owned by 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$61m. 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?

It is good to see recent purchasing. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Science Applications International, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. 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've found that Science Applications International has 3 warning signs (2 don't sit too well with us!) that deserve your attention before going any further with your analysis.

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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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.

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