Julie Holland Is The Senior Vice President of Corporate Operations of Diodes Incorporated (NASDAQ:DIOD) And They Just Sold 62% Of Their Shares

Some Diodes Incorporated (NASDAQ:DIOD) shareholders may be a little concerned to see that the Senior Vice President of Corporate Operations, Julie Holland, recently sold a substantial US$2.8m worth of stock at a price of US$92.97 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 62% of their entire holding.

Check out our latest analysis for Diodes

Diodes Insider Transactions Over The Last Year

Notably, that recent sale by Julie Holland is the biggest insider sale of Diodes shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$94.00). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 62% of Julie Holland's holding.

Insiders in Diodes didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Diodes better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Diodes 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 Diodes insiders own 2.1% of the company, worth about US$91m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Diodes Tell Us?

Insiders sold Diodes shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Diodes makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. Our analysis shows 2 warning signs for Diodes (1 is potentially serious!) and we strongly recommend you look at these before investing.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.