Last week, Dell Technologies Inc.’s (NYSE:DELL) stock jumped 5.5%, but insiders who sold US$18m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$49.92, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Dell Technologies
The Last 12 Months Of Insider Transactions At Dell Technologies
Over the last year, we can see that the biggest insider sale was by the President of Global Sales & Customer Operations, William Scannell, for US$8.7m worth of shares, at about US$54.54 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 the current price of US$42.42. So it may not tell us anything about how insiders feel about the current share price.
In the last year Dell Technologies 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. If you click on the chart, you can see all the individual transactions, including the share price, individually 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.
Insiders At Dell Technologies Have Sold Stock Recently
The last quarter saw substantial insider selling of Dell Technologies shares. Specifically, President of Global Sales & Customer Operations William Scannell ditched US$3.9m worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the end all.
Does Dell Technologies Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Dell Technologies insiders own about US$16b worth of shares (which is 54% of the company). I like to see this level of insider ownership, because it increases the chances that management is thinking about the best interests of shareholders.
So What Do The Dell Technologies Insider Transactions Indicate?
An insider hasn’t bought Dell Technologies stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. 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. 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. At Simply Wall St, we’ve found that Dell Technologies has 6 warning signs (1 is a bit unpleasant!) that deserves your attention before going any further with your analysis.
But note: Dell Technologies 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, 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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