Over the past year, insiders sold US$48m worth of Applied Materials, Inc. (NASDAQ:AMAT) stock at an average price of US$148 per share allowing them to get the most out of their money. The company's market worth decreased by US$2.9b over the past week after the stock price dropped 3.1%, although insiders were able to minimize their losses
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Applied Materials Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President, Gary Dickerson, for US$43m worth of shares, at about US$154 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$107. So it may not shed much light on insider confidence at current levels.
In the last year Applied Materials insiders didn't buy any company stock. 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!
I will like Applied Materials better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Have Applied Materials Insiders Traded Recently?
In the last three months company insider Timothy Deane divested US$2.7k worth of stock. That is not a lot. The net selling is so small that it's hard to draw any conclusions from these recent transactions.
Insider Ownership Of Applied Materials
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Applied Materials insiders own 0.3% of the company, currently worth about US$279m 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 Does This Data Suggest About Applied Materials Insiders?
We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we're not worried. While we feel good about high insider ownership of Applied Materials, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Applied Materials, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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.
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