Insiders who sold US$4.0m worth of Zebra Technologies Corporation (NASDAQ:ZBRA) stock last year were handsomely rewarded

Zebra Technologies Corporation's (NASDAQ:ZBRA) stock rose 6.2% last week, but insiders who sold US$4.0m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$518, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our analysis indicates that ZBRA is potentially undervalued!

The Last 12 Months Of Insider Transactions At Zebra Technologies

The Independent Director, Frank Modruson, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$605 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$272. So it may not shed much light on insider confidence at current levels.

In the last year Zebra Technologies insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Zebra Technologies

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. Zebra Technologies insiders own about US$72m worth of shares. That equates to 0.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Zebra Technologies Insider Transactions Indicate?

The fact that there have been no Zebra Technologies insider transactions recently certainly doesn't bother us. Our analysis of Zebra Technologies insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with Zebra Technologies and understanding them should be part of your investment process.

But note: Zebra Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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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.