Some Micron Technology, Inc. (NASDAQ:MU) shareholders may be a little concerned to see that the Senior Vice President of Worldwide Sales, Michael Bokan, recently sold a substantial US$1.7m worth of stock at a price of US$116 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.1%.
Micron Technology Insider Transactions Over The Last Year
The Executive VP & Chief Business Officer, Sumit Sadana, made the biggest insider sale in the last 12 months. That single transaction was for US$3.0m worth of shares at a price of US$70.05 each. That means that even when the share price was below the current price of US$119, 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. 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 17% of Sumit Sadana's holding.
Micron Technology insiders didn't buy any shares 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Of Micron Technology
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Micron Technology insiders own 0.3% of the company, currently worth about US$346m 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 Does This Data Suggest About Micron Technology Insiders?
An insider hasn't bought Micron Technology 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. 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 Micron Technology. Case in point: We've spotted 1 warning sign for Micron Technology you should be aware of.
Of course Micron Technology may not be the best stock to buy. So you may wish to see this free collection of high quality 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.