We wouldn't blame QUALCOMM Incorporated (NASDAQ:QCOM) shareholders if they were a little worried about the fact that James Thompson, the Chief Technology Officer of Qualcomm Technologies recently netted about US$1.8m selling shares at an average price of US$183. However, that sale only accounted for 3.3% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At QUALCOMM
Notably, that recent sale by James Thompson is the biggest insider sale of QUALCOMM shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$182. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. QUALCOMM insiders own about US$253m worth of shares (which is 0.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At QUALCOMM Tell Us?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since QUALCOMM is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing QUALCOMM. While conducting our analysis, we found that QUALCOMM has 2 warning signs and it would be unwise to ignore these.
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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