Have Texas Instruments Insiders Been Selling Stock?

We wouldn't blame Texas Instruments Incorporated (NASDAQ:TXN) shareholders if they were a little worried about the fact that Mark Roberts, the Senior Vice President of Sales & Marketing recently netted about US$1.0m selling shares at an average price of US$213. However, that sale only accounted for 9.0% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Texas Instruments

Texas Instruments Insider Transactions Over The Last Year

Notably, that recent sale by Mark Roberts is the biggest insider sale of Texas Instruments shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$204. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Texas Instruments insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Texas Instruments insiders own 0.1% of the company, currently worth about US$231m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Texas Instruments Tell Us?

Insiders sold Texas Instruments 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 a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. At Simply Wall St, we found 2 warning signs for Texas Instruments that deserve your attention before buying any shares.

Of course Texas Instruments may not be the best stock to buy. So you may wish to see this free collection of high quality 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.