Have Insiders Sold Applied Materials, Inc. (NASDAQ:AMAT) Shares Recently?

By
Simply Wall St
Published
December 27, 2020

We note that the Applied Materials, Inc. (NASDAQ:AMAT) Senior VP, Omkaram Nalamasu, recently sold US$69k worth of stock for US$86.50 per share. However we note that the sale only shrunk their holding by 0.6%.

See our latest analysis for Applied Materials

Applied Materials Insider Transactions Over The Last Year

The Independent Director, Alexander Karsner, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$60.50 each. That means that an insider was selling shares at slightly below the current price (US$85.33). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 90% of Alexander Karsner's holding.

In the last year Applied Materials insiders didn't buy any company stock. 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!

NasdaqGS:AMAT Insider Trading Volume December 27th 2020

I will like Applied Materials better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Applied Materials insiders own 0.4% of the company, currently worth about US$313m based on the recent share price. 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 Applied Materials Insider Transactions Indicate?

An insider hasn't bought Applied Materials stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Applied Materials makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Applied Materials has 3 warning signs we think you should be aware of.

Of course Applied Materials may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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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