Have Insiders Sold Adobe Shares Recently?

We wouldn't blame Adobe Inc. (NASDAQ:ADBE) shareholders if they were a little worried about the fact that Shantanu Narayen, the Chairman & CEO recently netted about US$14m selling shares at an average price of US$544. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.2%.

View our latest analysis for Adobe

The Last 12 Months Of Insider Transactions At Adobe

In fact, the recent sale by Chairman & CEO Shantanu Narayen was not their only sale of Adobe shares this year. They previously made an even bigger sale of -US$19m worth of shares at a price of US$600 per share. So what is clear is that an insider saw fit to sell at around the current price of US$556. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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 total, Adobe insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Adobe 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. We usually like to see fairly high levels of insider ownership. Adobe insiders own about US$394m worth of shares (which is 0.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Adobe Insiders?

Insiders haven't bought Adobe stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Adobe makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Adobe has 1 warning sign and it would be unwise to ignore it.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com