NXP Semiconductors Executive VP & CFO William Betz Sells 82% Of Holding

Some NXP Semiconductors N.V. (NASDAQ:NXPI) shareholders may be a little concerned to see that the Executive VP & CFO, William Betz, recently sold a substantial US$1.5m worth of stock at a price of US$227 per share. That diminished their holding by a very significant 82%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At NXP Semiconductors

In fact, the recent sale by William Betz was the biggest sale of NXP Semiconductors shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$221. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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.

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!

Check out our latest analysis for NXP Semiconductors

I will like NXP Semiconductors better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of NXP Semiconductors

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.1% of NXP Semiconductors shares, worth about US$71m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About NXP Semiconductors Insiders?

An insider sold NXP Semiconductors shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NXP Semiconductors. In terms of investment risks, we've identified 2 warning signs with NXP Semiconductors and understanding them should be part of your investment process.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.