With Qorvo, Inc.'s (NASDAQ:QRVO)) price down 5.9% this week, insiders might find some solace having sold US$1.1m worth of shares earlier this year.

By
Simply Wall St
Published
March 16, 2022
NasdaqGS:QRVO
Source: Shutterstock

By selling US$1.1m worth of Qorvo, Inc. (NASDAQ:QRVO) stock at an average sell price of US$182 over the last year, insiders seemed to have made the most of their holdings. After the stock price dropped 5.9% last week, the company's market value declined by US$833m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Qorvo

The Last 12 Months Of Insider Transactions At Qorvo

Over the last year, we can see that the biggest insider sale was by the insider, Walter Wilkinson, for US$570k worth of shares, at about US$194 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$121). So it may not shed much light on insider confidence at current levels.

Qorvo 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!

insider-trading-volume
NasdaqGS:QRVO Insider Trading Volume March 16th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Qorvo 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 Qorvo insiders own 0.6% of the company, worth about US$76m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Qorvo Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Qorvo insiders. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Qorvo you should be aware of.

But note: Qorvo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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