Some Gen Digital Inc. (NASDAQ:GEN) shareholders may be a little concerned to see that the Director, Ondrej Vlcek, recently sold a substantial US$2.5m worth of stock at a price of US$24.78 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 2.4%.
The Last 12 Months Of Insider Transactions At Gen Digital
In fact, the recent sale by Director Ondrej Vlcek was not their only sale of Gen Digital shares this year. Earlier in the year, they fetched US$27.12 per share in a -US$3.1m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$24.32). So it is hard to draw any strong conclusion from it.
All up, insiders sold more shares in Gen Digital than they bought, over the last year. 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!
Check out our latest analysis for Gen Digital
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Does Gen Digital Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Gen Digital insiders own 9.6% of the company, currently worth about US$1.4b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Gen Digital Tell Us?
The stark truth for Gen Digital is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Gen Digital is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. When we did our research, we found 3 warning signs for Gen Digital (1 is concerning!) that we believe deserve your full attention.
Of course Gen Digital 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.