We wouldn't blame Keysight Technologies, Inc. (NYSE:KEYS) shareholders if they were a little worried about the fact that Satish Dhanasekaran, the President recently netted about US$1.1m selling shares at an average price of US$364. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.
Over the last year, we can see that the biggest insider sale was by the Non-Executive Chair, Ronald Nersesian, for US$5.9m worth of shares, at about US$197 per share. That means that even when the share price was below the current price of US$381, an insider wanted to cash in some shares. 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 13% of Ronald Nersesian's holding.
Insiders in Keysight Technologies didn't buy any shares in the last year. 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!
See our latest analysis for Keysight Technologies
I will like Keysight Technologies 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.
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. Keysight Technologies insiders own 0.5% of the company, currently worth about US$324m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Keysight Technologies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Keysight Technologies you should be aware of.
Of course Keysight Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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