Anyone interested in Diodes Incorporated (NASDAQ:DIOD) should probably be aware that the Corporate Secretary & Special Assistant to the CEO, Richard White, recently divested US$385k worth of shares in the company, at an average price of US$77.01 each. However, the silver lining is that the sale only reduced their total holding by 9.5%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Diodes
Over the last year, we can see that the biggest insider sale was by the insider, Raymond K. Y. Soong, for US$5.2m worth of shares, at about US$52.08 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$84.10. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 24% of Raymond K. Y. Soong's holding.
In the last year Diodes insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Diodes insiders own 3.9% of the company, currently worth about US$144m based on the recent share price. 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 Diodes Insiders?
Insiders sold Diodes shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Diodes. In terms of investment risks, we've identified 4 warning signs with Diodes and understanding these should be part of your investment process.
But note: Diodes 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.
This article by Simply Wall St is general in nature. 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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