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One International Business Machines Corporation (NYSE:IBM) insider reduced their stake by 17% in the previous year

From what we can see, insiders were net sellers in International Business Machines Corporation's (NYSE:IBM ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for International Business Machines

International Business Machines Insider Transactions Over The Last Year

Notably, that recent sale by Robert Del Bene is the biggest insider sale of International Business Machines shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$148). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 17%of Robert Del Bene's holding.

In the last twelve months insiders purchased 1.08k shares for US$135k. But insiders sold 4.60k shares worth US$668k. Robert Del Bene divested 4.60k shares over the last 12 months at an average price of US$145. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

International Business Machines Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at International Business Machines. In total, insider Robert Del Bene sold US$445k worth of shares in that time. On the flip side, Independent Director David Farr spent US$125k on purchasing shares. Generally this level of net selling might be considered a bit bearish.

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. It's great to see that International Business Machines insiders own 0.08% of the company, worth about US$105m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The International Business Machines Insider Transactions Indicate?

Unfortunately, there has been more insider selling of International Business Machines stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 that end, you should learn about the 5 warning signs we've spotted with International Business Machines (including 1 which is potentially serious).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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