This Insider Has Just Sold Shares In Super Micro Computer

We wouldn't blame Super Micro Computer, Inc. (NASDAQ:SMCI) shareholders if they were a little worried about the fact that Chiu-Chu Liu Liang, the Co-Founder recently netted about US$9.0m selling shares at an average price of US$45.02. However, that sale only accounted for 0.3% of their holding, so arguably it doesn't say much about their conviction.

We've discovered 4 warning signs about Super Micro Computer. View them for free.

The Last 12 Months Of Insider Transactions At Super Micro Computer

Notably, that recent sale by Chiu-Chu Liu Liang is the biggest insider sale of Super Micro Computer shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$46.15). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 0.3% of Chiu-Chu Liu Liang's holding.

Super Micro Computer insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Super Micro Computer

I will like Super Micro Computer 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Super Micro Computer insiders own 16% of the company, currently worth about US$4.5b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Super Micro Computer Tell Us?

Insiders haven't bought Super Micro Computer stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Super Micro Computer is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Super Micro Computer you should be aware of, and 1 of these is a bit concerning.

Of course Super Micro Computer 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.