Don't Ignore The Insider Selling In Everspin Technologies

Anyone interested in Everspin Technologies, Inc. (NASDAQ:MRAM) should probably be aware that the President, Sanjeev Aggarwal, recently divested US$174k worth of shares in the company, at an average price of US$10.15 each. On the bright side, that sale was only 8.5% of their holding, so we doubt it's very meaningful, on its own.

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Everspin Technologies Insider Transactions Over The Last Year

Notably, that recent sale by President Sanjeev Aggarwal was not the only time they sold Everspin Technologies shares this year. Earlier in the year, they fetched US$6.29 per share in a -US$176k sale. That means that an insider was selling shares at slightly below the current price (US$11.39). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 11% of Sanjeev Aggarwal's stake.

Insiders in Everspin Technologies 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!

See our latest analysis for Everspin Technologies

I will like Everspin Technologies 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.

Insider Ownership Of Everspin Technologies

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Everspin Technologies insiders own 5.5% of the company, worth about US$14m. 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 Everspin Technologies Insider Transactions Indicate?

An insider hasn't bought Everspin Technologies stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Everspin Technologies. While conducting our analysis, we found that Everspin Technologies has 1 warning sign and it would be unwise to ignore this.

Of course Everspin Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.