This Insider Has Just Sold Shares In Micron Technology

We wouldn't blame Micron Technology, Inc. (NASDAQ:MU) shareholders if they were a little worried about the fact that Scott Allen, the Corporate VP & Chief Accounting Officer recently netted about US$1.8m selling shares at an average price of US$210. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Micron Technology

In the last twelve months, the biggest single sale by an insider was when the Executive VP & Chief Business Officer, Sumit Sadana, sold US$12m worth of shares at a price of US$125 per share. That means that even when the share price was below the current price of US$220, 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. It is worth noting that this sale was only 32% of Sumit Sadana's holding.

In the last year Micron Technology 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!

View our latest analysis for Micron Technology

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Insider Ownership

Many investors like to check how much of a company is owned by 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. It's great to see that Micron Technology insiders own 0.3% of the company, worth about US$686m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Micron Technology Tell Us?

Insiders haven't bought Micron Technology 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. But it is good to see that Micron Technology is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Micron Technology that deserve your attention before buying any shares.

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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.