Fabrinet Executive VP & CFO Csaba Sverha Sells 43% Of Holding

We wouldn't blame Fabrinet (NYSE:FN) shareholders if they were a little worried about the fact that Csaba Sverha, the Executive VP & CFO recently netted about US$3.1m selling shares at an average price of US$311. That sale reduced their total holding by 43% which is hardly insignificant, but far from the worst we've seen.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Fabrinet Insider Transactions Over The Last Year

The President & COO, Harpal Gill, made the biggest insider sale in the last 12 months. That single transaction was for US$4.5m worth of shares at a price of US$240 each. That means that an insider was selling shares at slightly below the current price (US$355). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. This single sale was 100% of Harpal Gill's stake.

Insiders in Fabrinet 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Fabrinet

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 Of Fabrinet

Many investors like to check how much of a company is owned by 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. It appears that Fabrinet insiders own 0.5% of the company, worth about US$55m. 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 Fabrinet Insider Transactions Indicate?

Insiders sold Fabrinet shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Fabrinet is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. You'd be interested to know, that we found 1 warning sign for Fabrinet and we suggest you have a look.

But note: Fabrinet 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.

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.