We wouldn't blame Xilinx, Inc. (NASDAQ:XLNX) shareholders if they were a little worried about the fact that Vincent Tong, the Executive Vice President of Global Operations & Quality recently netted about US$3.9m selling shares at an average price of US$196. That sale reduced their total holding by 37% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Xilinx
Notably, that recent sale by Vincent Tong is the biggest insider sale of Xilinx shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$209). 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. 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 37% of Vincent Tong's holding.
Xilinx insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Xilinx
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of Xilinx shares, worth about US$84m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Xilinx Tell Us?
Insiders sold Xilinx shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Xilinx is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Xilinx you should know about.
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.
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