Insiders Sold US$2.5m Of Ichor Holdings Stock Possibly Sending Warning Sign

Last week, Ichor Holdings, Ltd.'s (NASDAQ:ICHR) stock jumped 17%, but insiders who sold US$2.5m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$45.37, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Ichor Holdings

The Last 12 Months Of Insider Transactions At Ichor Holdings

In the last twelve months, the biggest single sale by an insider was when the Chairman, Thomas Rohrs, sold US$2.3m worth of shares at a price of US$45.37 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$31.86. So it may not shed much light on insider confidence at current levels.

In the last year Ichor Holdings insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Ichor Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.4% of Ichor Holdings shares, worth about US$15m. 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 Ichor Holdings Tell Us?

It doesn't really mean much that no insider has traded Ichor Holdings shares in the last quarter. We don't take much encouragement from the transactions by Ichor Holdings insiders. But it's good to see that insiders own shares in the company. 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. At Simply Wall St, we found 1 warning sign for Ichor Holdings that deserve your attention before buying any shares.

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.