Rambus Senior VP & COO Xianzhi Fan Sells 36% Of Holding

Some Rambus Inc. (NASDAQ:RMBS) shareholders may be a little concerned to see that the Senior VP & COO, Xianzhi Fan, recently sold a substantial US$3.6m worth of stock at a price of US$68.02 per share. That sale reduced their total holding by 36% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Rambus

The Last 12 Months Of Insider Transactions At Rambus

In fact, the recent sale by Xianzhi Fan was the biggest sale of Rambus shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$64.95. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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 the last year Rambus insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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. We usually like to see fairly high levels of insider ownership. It appears that Rambus insiders own 0.7% of the company, worth about US$48m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Rambus Tell Us?

Insiders haven't bought Rambus stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rambus. At Simply Wall St, we found 2 warning signs for Rambus 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.