Some Littelfuse, Inc. (NASDAQ:LFUS) shareholders may be a little concerned to see that the Executive VP of Mergers and Acquisitions, Ryan Stafford, recently sold a substantial US$569k worth of stock at a price of US$256 per share. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Littelfuse

Notably, that recent sale by Ryan Stafford is the biggest insider sale of Littelfuse shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$257). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 11%of Ryan Stafford's holding.

Insiders in Littelfuse 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Littelfuse insiders own 1.7% of the company, worth about US$108m. 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 Do The Littelfuse Insider Transactions Indicate?

Insiders sold Littelfuse shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Littelfuse. Every company has risks, and we've spotted 2 warning signs for Littelfuse 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 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.