Some Dell Technologies Inc. (NYSE:DELL) shareholders may be a little concerned to see that the Senior VP of Corporate Finance & Chief Accounting Officer, Brunilda Rios, recently sold a substantial US$965k worth of stock at a price of US$43.78 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 92% of their entire holding.
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The Last 12 Months Of Insider Transactions At Dell Technologies
The President of Global Sales & Customer Operations, William Scannell, made the biggest insider sale in the last 12 months. That single transaction was for US$3.9m worth of shares at a price of US$42.62 each. That means that even when the share price was slightly below the current price of US$43.11, an insider wanted to cash in some shares. 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. It is worth noting that this sale was 57% of William Scannell’s holding.
Insiders in Dell Technologies 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!
I will like Dell Technologies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Dell Technologies
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dell Technologies insiders own 53% of the company, currently worth about US$17b 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.
So What Does This Data Suggest About Dell Technologies Insiders?
An insider sold stock recently, but they haven’t been buying. And even if we look at the last year, we didn’t see any purchases. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we’ve spotted 6 warning signs for Dell Technologies (of which 1 is significant!) you should know about.
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, 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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