Ichor Holdings Insiders Sell US$643k Of Stock, Possibly Signalling Caution

Many Ichor Holdings, Ltd. (NASDAQ:ICHR) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Ichor Holdings Insider Transactions Over The Last Year

The Chief Technology Officer, Philip Barros, made the biggest insider sale in the last 12 months. That single transaction was for US$547k worth of shares at a price of US$35.22 each. 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$18.44). So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$522k for 31.00k shares. But they sold 18.54k shares for US$643k. In total, Ichor Holdings insiders sold more than they bought over the last year. 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!

View our latest analysis for Ichor Holdings

I will like Ichor Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Ichor Holdings Have Bought Stock Recently

Over the last quarter, Ichor Holdings insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$522k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of Ichor Holdings

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. Insiders own 1.8% of Ichor Holdings shares, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Ichor Holdings Tell Us?

It is good to see recent purchasing. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Ichor Holdings insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. While it's good to be aware of 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. Case in point: We've spotted 1 warning sign for Ichor Holdings you should be aware of.

But note: Ichor Holdings 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.