Trade Alert: Senior VP of Software & Chief Commercial Officer Of International Business Machines Robert Thomas Has Sold Stock

Some International Business Machines Corporation (NYSE:IBM) shareholders may be a little concerned to see that the Senior VP of Software & Chief Commercial Officer, Robert Thomas, recently sold a substantial US$6.7m worth of stock at a price of US$253 per share. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for International Business Machines

International Business Machines Insider Transactions Over The Last Year

In fact, the recent sale by Robert Thomas was the biggest sale of International Business Machines shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$253). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 30% of Robert Thomas's stake.

Happily, we note that in the last year insiders paid US$496k for 2.14k shares. But they sold 30.14k shares for US$7.5m. All up, insiders sold more shares in International Business Machines than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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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. A high insider ownership often makes company leadership more mindful of shareholder interests. International Business Machines insiders own 0.1% of the company, currently worth about US$258m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About International Business Machines Insiders?

The stark truth for International Business Machines is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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 International Business Machines. You'd be interested to know, that we found 4 warning signs for International Business Machines and we suggest you have a look.

Of course International Business Machines 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.