Insiders are probably glad they sold their shares in Skyworks Solutions, Inc. (NASDAQ:SWKS) after 14% drop

By
Simply Wall St
Published
May 11, 2022
NasdaqGS:SWKS
Source: Shutterstock

By selling US$372k worth of Skyworks Solutions, Inc. (NASDAQ:SWKS) stock at an average sell price of US$186 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by US$2.8b over the past week after the stock price dropped 14%, although insiders were able to minimize 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 Skyworks Solutions

The Last 12 Months Of Insider Transactions At Skyworks Solutions

Over the last year, we can see that the biggest insider sale was by the Independent Non-Employee Director, Timothy Furey, for US$372k worth of shares, at about US$186 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$103). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Timothy Furey.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:SWKS Insider Trading Volume May 11th 2022

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

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Skyworks Solutions insiders own about US$59m worth of shares. That equates to 0.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Skyworks Solutions Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Skyworks Solutions in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. 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 2 warning signs with Skyworks Solutions and understanding them 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, but not derivative transactions.

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