This Insider Has Just Sold Shares In Cirrus Logic, Inc. (NASDAQ:CRUS)

By
Simply Wall St
Published
May 11, 2022
NasdaqGS:CRUS
Source: Shutterstock

Investors may wish to note that the Independent Director of Cirrus Logic, Inc., Alexander Davern, recently netted US$80k from selling stock, receiving an average price of US$79.99. However we note that the sale only shrunk their holding by 5.4%.

View our latest analysis for Cirrus Logic

The Last 12 Months Of Insider Transactions At Cirrus Logic

Over the last year, we can see that the biggest insider purchase was by CEO, President & Director John Forsyth for US$518k worth of shares, at about US$79.71 per share. That means that even when the share price was higher than US$77.80 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was John Forsyth.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:CRUS Insider Trading Volume May 11th 2022

Cirrus Logic is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Cirrus Logic Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Cirrus Logic insiders own 0.7% of the company, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Cirrus Logic Tell Us?

Insiders haven't bought Cirrus Logic stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. 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. At Simply Wall St, we've found that Cirrus Logic has 3 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.

But note: Cirrus Logic 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, but not derivative transactions.

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