An Insider At Alpha and Omega Semiconductor Lowered Their Holding Recently

Looking at Alpha and Omega Semiconductor Limited's (NASDAQ:AOSL ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Alpha and Omega Semiconductor

The Last 12 Months Of Insider Transactions At Alpha and Omega Semiconductor

The Independent Director, Lucas S. Chang, made the biggest insider sale in the last 12 months. That single transaction was for US$129k worth of shares at a price of US$38.06 each. So what is clear is that an insider saw fit to sell at around the current price of US$35.85. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Lucas S. Chang was the only individual insider to sell shares in the last twelve months.

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!

I will like Alpha and Omega Semiconductor 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 Alpha and Omega Semiconductor Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Alpha and Omega Semiconductor insiders own 17% of the company, worth about US$171m. 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 Alpha and Omega Semiconductor Insider Transactions Indicate?

The fact that there have been no Alpha and Omega Semiconductor insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Alpha and Omega Semiconductor, we can't say the same about the selling of shares. 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. At Simply Wall St, we found 1 warning sign for Alpha and Omega Semiconductor that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.