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Dell Technologies President of Global Sales & Customer Operations William Scannell Sells 100% Of Holding
Some Dell Technologies Inc. (NYSE:DELL) shareholders may be a little concerned to see that the President of Global Sales & Customer Operations, William Scannell, recently sold a substantial US$11m worth of stock at a price of US$118 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
Dell Technologies Insider Transactions Over The Last Year
The Chairman & CEO, Michael Dell, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2b worth of shares at a price of US$122 each. So we know that an insider sold shares at around the present share price of US$121. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Dell Technologies 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Dell Technologies
I will like Dell Technologies 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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Dell Technologies insiders own 42% of the company, currently worth about US$35b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Dell Technologies Tell Us?
Insiders sold Dell Technologies shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Dell Technologies is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Dell Technologies and understanding these should be part of your investment process.
But note: Dell 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 of direct interests only, but not derivative transactions or indirect interests.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About NYSE:DELL
Dell Technologies
Designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally.
Solid track record and good value.
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