Insiders may be rethinking their US$4.6m Intel Corporation (NASDAQ:INTC) investment now that the company has lost US$10b in value.
Insiders who bought US$4.6m worth ofIntel Corporation's(NASDAQ:INTC) stock at an average buy price of US$30.23 over the last year may be disappointed by the recent 8.9% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$3.8m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Intel Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Lip-Bu Tan bought US$1.5m worth of shares at a price of US$29.49 per share. That means that an insider was happy to buy shares at above the current price of US$25.14. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Intel insiders were buying shares, but not selling. 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!
Intel Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Intel. Not only was there no selling that we can see, but they collectively bought US$502k worth of shares. That shows some optimism about the company's future.
Insider Ownership Of Intel
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Intel insiders own 0.06% of the company, worth about US$58m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Intel Insiders?
It's certainly positive to see the recent insider purchases. And also take confidence from the longer term picture of insider transactions. Insiders likely see value in Intel shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Intel.
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