Executive Vice President of Global Operations & Technology Of Analog Devices Sold 33% Of Their Shares

Some Analog Devices, Inc. (NASDAQ:ADI) shareholders may be a little concerned to see that the Executive Vice President of Global Operations & Technology, Vivek Jain, recently sold a substantial US$1.6m worth of stock at a price of US$266 per share. That's a big disposal, and it decreased their holding size by 33%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Analog Devices

The CEO & Chair of the Board of Directors, Vincent Roche, made the biggest insider sale in the last 12 months. That single transaction was for US$5.1m worth of shares at a price of US$255 each. That means that an insider was selling shares at slightly below the current price (US$278). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 14% of Vincent Roche's holding.

Analog Devices insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Analog Devices

I will like Analog Devices 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.

Does Analog Devices Boast High Insider Ownership?

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. It's great to see that Analog Devices insiders own 0.2% of the company, worth about US$316m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Analog Devices Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Analog Devices. For example - Analog Devices has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.