Silvaco Group, Inc.'s (NASDAQ:SVCO) value has fallen 11% in the last week, but insiders who sold US$306k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$6.13 is still lower than the current share price.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Silvaco Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Senior VP & GM of TCAD Division, Eric Guichard, for US$180k worth of shares, at about US$7.19 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$4.56. So it is hard to draw any strong conclusion from it.
Silvaco Group 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!
Check out our latest analysis for Silvaco Group
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).
Insiders At Silvaco Group Have Sold Stock Recently
The last quarter saw substantial insider selling of Silvaco Group shares. In total, Chairman of the Board Katherine Ngai-Pesic sold US$127k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Silvaco Group insiders own 74% of the company, currently worth about US$98m 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.
So What Does This Data Suggest About Silvaco Group Insiders?
An insider sold Silvaco Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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 Silvaco Group. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Silvaco Group.
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 of direct interests only, but not derivative transactions or indirect interests.
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