Have Texas Instruments Insiders Been Selling Stock?
Some Texas Instruments Incorporated (NASDAQ:TXN) shareholders may be a little concerned to see that insider Tsedeniya Abraham recently sold a substantial US$1.5m worth of stock at a price of US$265 per share. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Texas Instruments
Over the last year, we can see that the biggest insider sale was by the Independent Director, Mark Blinn, for US$4.2m worth of shares, at about US$279 per share. That means that an insider was selling shares at around the current price of US$261. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year Texas Instruments insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Texas Instruments
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. We usually like to see fairly high levels of insider ownership. Texas Instruments insiders own 0.1% of the company, currently worth about US$248m 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 Do The Texas Instruments Insider Transactions Indicate?
An insider hasn't bought Texas Instruments 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 Texas Instruments is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Texas Instruments has 1 warning sign we think you should be aware of.
But note: Texas Instruments 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.
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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.