Some Fabrinet (NYSE:FN) shareholders may be a little concerned to see that the Independent Director, Thomas Kelly, recently sold a substantial US$1.1m worth of stock at a price of US$169 per share. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

Check out our latest analysis for Fabrinet

Fabrinet Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Seamus Grady, sold US$4.3m worth of shares at a price of US$160 per share. That means that even when the share price was below the current price of US$166, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 79% of Seamus Grady's stake.

Insiders in Fabrinet didn't buy any shares in the last year. 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!

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Does Fabrinet 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.4% of Fabrinet shares, worth about US$27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Fabrinet Insiders?

Insiders haven't bought Fabrinet stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Fabrinet makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fabrinet. Every company has risks, and we've spotted 1 warning sign for Fabrinet you should know about.

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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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