This Insider Has Just Sold Shares In Everspin Technologies

We'd be surprised if Everspin Technologies, Inc. (NASDAQ:MRAM) shareholders haven't noticed that the President, Sanjeev Aggarwal, recently sold US$176k worth of stock at US$6.29 per share. The eyebrow raising move amounted to a reduction of 11% in their holding.

View our latest analysis for Everspin Technologies

The Last 12 Months Of Insider Transactions At Everspin Technologies

Notably, that recent sale by Sanjeev Aggarwal is the biggest insider sale of Everspin Technologies shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$6.38, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 11% of Sanjeev Aggarwal's holding.

In the last year Everspin Technologies insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and 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!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Everspin Technologies insiders own 4.7% of the company, worth about US$6.7m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Everspin Technologies Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Everspin Technologies has 4 warning signs we think you should be aware of.

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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.