Don't Ignore The Insider Selling In Analog Devices

Some Analog Devices, Inc. (NASDAQ:ADI) shareholders may be a little concerned to see that the CEO & Chair of the Board of Directors, Vincent Roche, recently sold a substantial US$5.1m worth of stock at a price of US$254 per share. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Analog Devices

Notably, that recent sale by Vincent Roche is the biggest insider sale of Analog Devices shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$251. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Analog Devices insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Analog Devices

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Insider Ownership Of Analog Devices

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Analog Devices insiders own 0.3% of the company, currently worth about US$321m 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 Analog Devices Insiders?

An insider sold Analog Devices shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Analog Devices is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Analog Devices you should be aware of.

But note: Analog Devices 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.