Don't Ignore The Insider Selling In Arrow Electronics \

Some Arrow Electronics, Inc. (NYSE:ARW) shareholders may be a little concerned to see that the President of Global Components, Kirk Schell, recently sold a substantial US$521k worth of stock at a price of US$126 per share. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Arrow Electronics

The Last 12 Months Of Insider Transactions At Arrow Electronics

In the last twelve months, the biggest single sale by an insider was when the insider, Michael Long, sold US$2.1m worth of shares at a price of US$118 per share. That means that an insider was selling shares at slightly below the current price (US$129). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 8.7% of Michael Long's holding.

Insiders in Arrow Electronics didn't buy any shares in 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!

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Does Arrow Electronics Boast High 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. Arrow Electronics insiders own about US$61m worth of shares. That equates to 0.8% 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.

What Might The Insider Transactions At Arrow Electronics Tell Us?

Insiders sold Arrow Electronics shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Arrow Electronics makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arrow Electronics. Case in point: We've spotted 3 warning signs for Arrow Electronics you should be aware of, and 2 of them are potentially serious.

Of course Arrow Electronics 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, 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.