Insiders at QUALCOMM Incorporated (NASDAQ:QCOM) sold US$2.0m worth of stock at an average price of US$178 a share over the past year, making the most of their investment. The company’s market cap plunged by US$7.8b after price dropped by 5.5% last week but insiders were able to limit their loss to an extent.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
QUALCOMM Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Technology Officer of Qualcomm Technologies, James Thompson, sold US$1.8m worth of shares at a price of US$183 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$120. So it may not tell us anything about how insiders feel about the current share price.
QUALCOMM insiders didn't buy any shares over the last year. 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!
I will like QUALCOMM better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does QUALCOMM Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. QUALCOMM insiders own about US$148m worth of shares (which is 0.1% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At QUALCOMM Tell Us?
It doesn't really mean much that no insider has traded QUALCOMM shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the QUALCOMM insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for QUALCOMM (1 shouldn't be ignored!) and we strongly recommend you look at these before investing.
But note: QUALCOMM may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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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.
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