Have Insiders Sold Marvell Technology, Inc. (NASDAQ:MRVL) Shares Recently?
Some Marvell Technology, Inc. (NASDAQ:MRVL) shareholders may be a little concerned to see that the Chief Accounting Officer, Willem Meintjes, recently sold a substantial US$535k worth of stock at a price of US$53.51 per share. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.
Check out our latest analysis for Marvell Technology
The Last 12 Months Of Insider Transactions At Marvell Technology
The Executive VP, Mitchell Gaynor, made the biggest insider sale in the last 12 months. That single transaction was for US$910k worth of shares at a price of US$46.84 each. That means that even when the share price was below the current price of US$54.27, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. It is worth noting that this sale was only 31% of Mitchell Gaynor's holding.
Over the last year we saw more insider selling of Marvell Technology shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Marvell Technology 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. Marvell Technology insiders own about US$231m worth of shares (which is 0.5% 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.
So What Does This Data Suggest About Marvell Technology Insiders?
An insider sold Marvell Technology shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. In terms of investment risks, we've identified 2 warning signs with Marvell Technology and understanding these should be part of your investment process.
But note: Marvell Technology 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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