The fact that multiple Agilent Technologies, Inc. (NYSE:A) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Agilent Technologies
The Last 12 Months Of Insider Transactions At Agilent Technologies
Over the last year, we can see that the biggest insider sale was by the Senior VP and President of Order Fulfillment & Supply Chain, Henrik Ancher-Jensen, for US$4.6m worth of shares, at about US$156 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$112. So it may not tell us anything about how insiders feel about the current share price.
In total, Agilent Technologies insiders sold more than they bought over the last year. 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, 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).
Insiders At Agilent Technologies Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Agilent Technologies. In that time, Principal Accounting Officer Rodney Gonsalves dumped US$416k worth of shares. On the other hand we note Principal Accounting Officer Rodney Gonsalves bought US$288 worth of shares , as previously mentioned . Generally this level of net selling might be considered a bit bearish.
Does Agilent Technologies Boast High 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. Insiders own 0.3% of Agilent Technologies shares, worth about US$92m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Agilent Technologies Tell Us?
The insider sales have outweighed the insider buying, at Agilent Technologies, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Agilent Technologies.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.