This Insider Has Just Sold Shares In Onto Innovation \

We'd be surprised if Onto Innovation Inc. (NYSE:ONTO) shareholders haven't noticed that an insider, David Miller, recently sold US$498k worth of stock at US$99.69 per share. That sale was 34% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Onto Innovation

Onto Innovation Insider Transactions Over The Last Year

Notably, that recent sale by David Miller is the biggest insider sale of Onto Innovation shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$109). 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. It is worth noting that this sale was only 34% of David Miller's holding.

Onto Innovation 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!

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

Does Onto Innovation Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 1.1% of Onto Innovation shares, worth about US$56m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Onto Innovation Tell Us?

Insiders sold Onto Innovation shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Onto Innovation is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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 Onto Innovation that deserve your attention before buying any shares.

Of course Onto Innovation 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, but not derivative transactions.

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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.