Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In Synaptics Incorporated (NASDAQ:SYNA)

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We wouldn't blame Synaptics Incorporated (NASDAQ:SYNA) shareholders if they were a little worried about the fact that Saleel Awsare, the Senior VP and GM of PC & Peripherals Division recently netted about US$576k selling shares at an average price of US$115. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Synaptics

Over the last year, we can see that the biggest insider sale was by the President, Michael E. Hurlston, for US$3.6m worth of shares, at about US$99.17 per share. That means that even when the share price was below the current price of US$107, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 14% of Michael E. Hurlston's stake.

In the last year Synaptics 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!

NasdaqGS:SYNA Insider Trading Volume March 15th 2023

I will like Synaptics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Synaptics Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.1% of Synaptics shares, worth about US$47m. 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 Synaptics Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Synaptics is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. 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. At Simply Wall St, we found 1 warning sign for Synaptics that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

What are the risks and opportunities for Synaptics?

Synaptics Incorporated develops, markets, and sells semiconductor product solutions worldwide.

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  • Trading at 15.6% below our estimate of its fair value

  • Earnings are forecast to grow 14.37% per year

  • Earnings grew by 64.7% over the past year


  • Significant insider selling over the past 3 months

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