Possible Bearish Signals With Leidos Holdings Insiders Disposing Stock

In the last year, many Leidos Holdings, Inc. (NYSE:LDOS) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Leidos Holdings

Leidos Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, David Fubini, sold US$1.0m worth of shares at a price of US$128 per share. That means that even when the share price was below the current price of US$155, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 35% of David Fubini's holding.

Over the last year we saw more insider selling of Leidos Holdings shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At Leidos Holdings Have Sold Stock Recently

The last three months saw some Leidos Holdings insider selling. US$298k worth of shares were sold by insiders. But the good news is that CEO & Director Thomas Bell bought US$248k worth. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Leidos Holdings insiders own 0.8% of the company, currently worth about US$160m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Leidos Holdings Insiders?

Our data shows a little more insider selling than buying in the last three months. But the difference isn't enough to have us worried. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Leidos Holdings insider transactions. 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. For example - Leidos Holdings has 3 warning signs we think you should be aware of.

But note: Leidos Holdings 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.