Vice Chairman Of Corning Sold 47% Of Their Shares

Some Corning Incorporated (NYSE:GLW) shareholders may be a little concerned to see that the Vice Chairman, Lewis Steverson, recently sold a substantial US$2.0m worth of stock at a price of US$151 per share. That sale reduced their total holding by 47% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Corning

The insider, Eric Musser, made the biggest insider sale in the last 12 months. That single transaction was for US$9.0m worth of shares at a price of US$90.17 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$146. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 69% of Eric Musser's holding.

Corning insiders didn't buy any shares over the last year. 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!

See our latest analysis for Corning

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. Corning insiders own 0.2% of the company, currently worth about US$289m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Corning Insiders?

An insider hasn't bought Corning stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Corning makes money, and is growing profits. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Corning and understanding them should be part of your investment process.

But note: Corning 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 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.