Have Insiders Sold Gen Digital Shares Recently?

We wouldn't blame Gen Digital Inc. (NASDAQ:GEN) shareholders if they were a little worried about the fact that Ondrej Vlcek, the Director recently netted about US$3.1m selling shares at an average price of US$27.12. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.6%.

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Gen Digital Insider Transactions Over The Last Year

Notably, that recent sale by Ondrej Vlcek is the biggest insider sale of Gen Digital shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$27.67, 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. We note that the biggest single sale was only 2.6% of Ondrej Vlcek's holding.

Over the last year we saw more insider selling of Gen Digital shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Gen Digital

I will like Gen Digital 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 Gen Digital

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Gen Digital insiders own 9.3% of the company, worth about US$1.6b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Gen Digital Insider Transactions Indicate?

The stark truth for Gen Digital is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Gen Digital has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

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 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.