Amkor Technology Insiders Sell US$97m Of Stock, Possibly Signalling Caution

Over the past year, many Amkor Technology, Inc. (NASDAQ:AMKR) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Amkor Technology

Amkor Technology Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, John Kim, sold US$49m worth of shares at a price of US$25.28 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$22.39. So it is hard to draw any strong conclusion from it.

Insiders in Amkor Technology 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. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Amkor Technology insiders own 23% of the company, worth about US$1.3b. 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 Does This Data Suggest About Amkor Technology Insiders?

It doesn't really mean much that no insider has traded Amkor Technology shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Amkor Technology insiders selling. Of course, the future is what matters most. So if you are interested in Amkor Technology, you should check out this free report on analyst forecasts for the company.

Of course Amkor Technology 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 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.