Have ON Semiconductor Insiders Been Selling Stock?

We wouldn't blame ON Semiconductor Corporation (NASDAQ:ON) shareholders if they were a little worried about the fact that Simon Keeton, the Group President of Power Solutions Group recently netted about US$1.9m selling shares at an average price of US$68.56. That sale reduced their total holding by 22% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for ON Semiconductor

The Last 12 Months Of Insider Transactions At ON Semiconductor

The Executive VP, Thad Trent, made the biggest insider sale in the last 12 months. That single transaction was for US$2.8m worth of shares at a price of US$72.55 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$64.80). So it is hard to draw any strong conclusion from it.

Insiders in ON Semiconductor didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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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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. It appears that ON Semiconductor insiders own 0.3% of the company, worth about US$92m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The ON Semiconductor Insider Transactions Indicate?

Insiders sold ON Semiconductor shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with ON Semiconductor 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.