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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in ON Semiconductor Corporation (NASDAQ:ON).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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The Last 12 Months Of Insider Transactions At ON Semiconductor
Over the last year, we can see that the biggest insider sale was by CEO, President & Director Keith Jackson for US$1.9m worth of shares, at about US$23.99 per share. That is hardly a positive sign, even though it took place above the latest price (US$18.49). So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we note insiders sold 147.25k shares worth US$3.5m. Over the last year we saw more insider selling of ON Semiconductor shares, than buying. The sellers received a price of around US$23.45, on average. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$18.49). You can see a visual depiction of insider transactions (by 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 alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at ON Semiconductor Have Sold Stock Recently
The last three months saw significant insider selling at ON Semiconductor. In total, insiders sold US$122k worth of shares in that time, and we didn’t record any purchases whatsoever. In light of this it’s hard to argue that all the directors think that the shares are a bargain.