Don't Ignore The Insider Selling In Everspin Technologies

We note that the Everspin Technologies, Inc. (NASDAQ:MRAM) Independent Director, Tara Long, recently sold US$58k worth of stock for US$7.70 per share. It wasn't a huge sale, but it did reduce their holding by 10%. This does not instill confidence.

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The Last 12 Months Of Insider Transactions At Everspin Technologies

In the last twelve months, the biggest single sale by an insider was when the President, Sanjeev Aggarwal, sold US$176k worth of shares at a price of US$6.29 per share. That means that an insider was selling shares at slightly below the current price (US$8.02). 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 only 11% of Sanjeev Aggarwal's holding.

Everspin Technologies insiders didn't buy any shares over 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!

View 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.

Does Everspin Technologies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Everspin Technologies insiders own 5.5% of the company, worth about US$10m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Everspin Technologies Insiders?

Insiders haven't bought Everspin Technologies stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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. In terms of investment risks, we've identified 2 warning signs with Everspin Technologies and understanding them should be part of your investment process.

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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.