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 would consider it foolish to ignore insider transactions altogether.

We've discovered 1 warning sign about Alpha and Omega Semiconductor. View them for free.

Alpha and Omega Semiconductor Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Lucas S. Chang, sold US$129k worth of shares at a price of US$38.06 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$21.76. So it is hard to draw any strong conclusion from it. Lucas S. Chang was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Alpha and Omega Semiconductor

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Alpha and Omega Semiconductor insiders own 17% of the company, worth about US$108m. 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 Does This Data Suggest About Alpha and Omega Semiconductor Insiders?

It doesn't really mean much that no insider has traded Alpha and Omega Semiconductor shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Alpha and Omega Semiconductor insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alpha and Omega Semiconductor. In terms of investment risks, we've identified 1 warning sign with Alpha and Omega Semiconductor and understanding it should be part of your investment process.

But note: Alpha and Omega Semiconductor may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.