This Insider Has Just Sold Shares In Dell Technologies

We wouldn't blame Dell Technologies Inc. (NYSE:DELL) shareholders if they were a little worried about the fact that Michael Dell, the Chairman & CEO recently netted about US$361m selling shares at an average price of US$106. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Dell Technologies

The Last 12 Months Of Insider Transactions At Dell Technologies

In fact, the recent sale by Chairman & CEO Michael Dell was not their only sale of Dell Technologies shares this year. They previously made an even bigger sale of -US$761m worth of shares at a price of US$136 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$112. So it may not shed much light on insider confidence at current levels.

Dell Technologies insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Dell Technologies insiders own 50% of the company, currently worth about US$39b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Dell Technologies Insider Transactions Indicate?

Insiders haven't bought Dell Technologies stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Dell Technologies is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Dell Technologies you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.