We note that the FormFactor, Inc. (NASDAQ:FORM) Chairman , Thomas Dennis, recently sold US$52k worth of stock for US$17.26 per share. However we note that the sale only shrunk their holding by 5.6%.
The Last 12 Months Of Insider Transactions At FormFactor
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Michael Zellner, sold US$148k worth of shares at a price of US$13.49 per share. That means that even when the share price was below the current price of US$17.09, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 20.8% of Michael Zellner’s holding.
We note that in the last year insiders divested 37400 shares for a total of US$567k. In the last year FormFactor insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does FormFactor Boast High 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. We usually like to see fairly high levels of insider ownership. It appears that FormFactor insiders own 1.3% of the company, worth about US$17m. 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 FormFactor Insider Transactions Indicate?
Insiders sold FormFactor shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. On the plus side, FormFactor makes money, and is growing profits. While insiders do own shares, they don’t own a heap, and they have been selling. We’d think twice before buying! Of course, the future is what matters most. So if you are interested in FormFactor, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.