Anyone interested in Cirrus Logic, Inc. (NASDAQ:CRUS) should probably be aware that the Senior Vice President of Global Operations, Justin Dougherty, recently divested US$431k worth of shares in the company, at an average price of US$108 each. The eyebrow raising move amounted to a reduction of 41% in their holding.
Cirrus Logic Insider Transactions Over The Last Year
In fact, the recent sale by Justin Dougherty was the biggest sale of Cirrus Logic shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$113. 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. 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 just 41% of Justin Dougherty's stake.
Justin Dougherty sold a total of 7.28k shares over the year at an average price of US$100. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Cirrus Logic
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 appears that Cirrus Logic insiders own 0.6% of the company, worth about US$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Cirrus Logic Tell Us?
An insider sold Cirrus Logic shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Cirrus Logic is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Cirrus Logic has 1 warning sign we think you should be aware of.
Of course Cirrus Logic 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.