Have Applied Materials Insiders Been Selling Stock?
Some Applied Materials, Inc. (NASDAQ:AMAT) shareholders may be a little concerned to see that the Senior VP, Brice Hill, recently sold a substantial US$3.6m worth of stock at a price of US$479 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Applied Materials
In the last twelve months, the biggest single sale by an insider was when the President, Gary Dickerson, sold US$56m worth of shares at a price of US$736 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$462). So it is hard to draw any strong conclusion from it.
Applied Materials 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!
See our latest analysis for Applied Materials
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Insider Ownership Of Applied Materials
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Applied Materials insiders own 0.3% of the company, currently worth about US$995m 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.
What Might The Insider Transactions At Applied Materials Tell Us?
Insiders haven't bought Applied Materials stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Applied Materials is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Applied Materials that deserve your attention before buying any shares.
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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.