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In the last year, multiple insiders have substantially increased their holdings of Intel Corporation (NASDAQ:INTC) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Intel
The Last 12 Months Of Insider Transactions At Intel
Over the last year, we can see that the biggest insider purchase was by Director Lip-Bu Tan for US$1.5m worth of shares, at about US$29.49 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$36.83. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$4.6m for 159.58k shares. On the other hand they divested 695.00 shares, for US$18k. In the last twelve months there was more buying than selling by Intel insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Intel is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Intel Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Intel. CEO & Director Patrick Gelsinger spent US$249k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Does Intel 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Intel insiders own 0.04% of the company, worth about US$63m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Intel Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Intel insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Intel.