Arrow Electronics Insiders Sold US$1.3m Of Shares Suggesting Hesitancy

In the last year, many Arrow Electronics, Inc. (NYSE:ARW) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Our free stock report includes 4 warning signs investors should be aware of before investing in Arrow Electronics. Read for free now.

Arrow Electronics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President of Global Enterprise Computing Solutions, Eric Nowak, for US$821k worth of shares, at about US$122 per share. That means that an insider was selling shares at around the current price of US$119. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

All up, insiders sold more shares in Arrow Electronics than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Arrow Electronics

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Arrow Electronics Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Arrow Electronics shares over the last three months. In total, insiders sold US$1.0m worth of shares in that time. Meanwhile Independent Director William Austen bought US$198k worth , as we said above . Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Arrow Electronics insiders own 0.8% of the company, worth about US$48m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Arrow Electronics Tell Us?

The insider sales have outweighed the insider buying, at Arrow Electronics, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arrow Electronics. At Simply Wall St, we found 4 warning signs for Arrow Electronics that deserve your attention before buying any shares.

But note: Arrow Electronics 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 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.