How Many Insiders Sold Flex Ltd. (NASDAQ:FLEX) Shares?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Flex Ltd. (NASDAQ:FLEX).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Flex
The Last 12 Months Of Insider Transactions At Flex
In the last twelve months, the biggest single sale by an insider was when CEO & Director Michael McNamara sold US$3.5m worth of shares at a price of US$14.50 per share. Although we don't gain confidence from insider selling, we note that this large sale was at well above current price of US$7.63. So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid US$300k for 38.53k shares. On the other hand they divested 584.36k shares, for US$8.4m. In total, Flex insiders sold more than they bought over the last year. The sellers received a price of around US$14.32, on average. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$7.63. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this freelist of companies. (Hint: insiders have been buying them).
Flex Insiders Bought Stock Recently
At Flex,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent US$300k on shares. But insiders only sold shares worth US$5.9k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Flex insiders own 0.9% of the company, worth about US$35m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Flex Tell Us?
It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Flex insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. Therefore, you should should definitely take a look at this FREEreport showing analyst forecasts for Flex.
Of course Flex may not be the best stock to buy. So you may wish to see this freecollection of high quality companies.
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The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.