Gen Digital Independent Director Nora Denzel Sells 56% Of Holding

Some Gen Digital Inc. (NASDAQ:GEN) shareholders may be a little concerned to see that the Independent Director, Nora Denzel, recently sold a substantial US$910k worth of stock at a price of US$28.76 per share. That diminished their holding by a very significant 56%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At Gen Digital

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Vincent Pilette, sold US$4.6m worth of shares at a price of US$25.54 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$28.41. 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 8.9% of Vincent Pilette's holding.

Gen Digital 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!

See our latest analysis for Gen Digital

I will like Gen Digital better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Gen Digital

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. Gen Digital insiders own about US$225m worth of shares (which is 1.3% of the company). 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 Gen Digital Tell Us?

An insider hasn't bought Gen Digital stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Gen Digital is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gen Digital. Our analysis shows 3 warning signs for Gen Digital (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

Of course Gen Digital 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.