Have Diodes Insiders Been Selling Stock?

Some Diodes Incorporated (NASDAQ:DIOD) shareholders may be a little concerned to see that the Chairman & CEO, Keh-Shew Lu, recently sold a substantial US$673k worth of stock at a price of US$67.20 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.4%.

See our latest analysis for Diodes

Diodes Insider Transactions Over The Last Year

Notably, that recent sale by Chairman & CEO Keh-Shew Lu was not the only time they sold Diodes shares this year. Earlier in the year, they fetched US$73.93 per share in a -US$1.2m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$66.97). So it may not shed much light on insider confidence at current levels.

Diodes insiders didn't buy any shares over the last year. 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!

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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Diodes insiders own 2.0% of the company, worth about US$63m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Diodes Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Diodes. At Simply Wall St, we found 2 warning signs for Diodes that deserve your attention before buying any shares.

But note: Diodes 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.