Anyone interested in Advanced Micro Devices, Inc. (NASDAQ:AMD) should probably be aware that the Corporate VP & Chief Accounting Officer, Darla Smith, recently divested US$195k worth of shares in the company, at an average price of US$92.76 each. The eyebrow raising move amounted to a reduction of 15% in their holding.
Advanced Micro Devices Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Nora Denzel, for US$5.9m worth of shares, at about US$78.75 per share. That means that an insider was selling shares at slightly below the current price (US$92.92). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 47% of Nora Denzel's stake.
Insiders in Advanced Micro Devices didn't buy any shares in 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!
I will like Advanced Micro Devices better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Advanced Micro Devices Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Advanced Micro Devices insiders own 0.7% of the company, currently worth about US$744m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Advanced Micro Devices Insider Transactions Indicate?
An insider hasn't bought Advanced Micro Devices stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Advanced Micro Devices is profitable and growing, we're not too worried by this. 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. While we like knowing 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. You'd be interested to know, that we found 1 warning sign for Advanced Micro Devices and we suggest you have a look.
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, but not derivative transactions.
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