Have Marvell Technology Insiders Been Selling Stock?

Some Marvell Technology, Inc. (NASDAQ:MRVL) shareholders may be a little concerned to see that the Independent Director, Fouad Tamer, recently sold a substantial US$6.8m worth of stock at a price of US$74.16 per share. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

Check out our latest analysis for Marvell Technology

Marvell Technology Insider Transactions Over The Last Year

Notably, that recent sale by Fouad Tamer is the biggest insider sale of Marvell Technology shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$71.55. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, Marvell Technology insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Marvell Technology Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Marvell Technology insiders own about US$254m worth of shares (which is 0.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Marvell Technology Tell Us?

The insider sales have outweighed the insider buying, at Marvell Technology, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. In terms of investment risks, we've identified 1 warning sign with Marvell Technology and understanding this should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.