Some Science Applications International Corporation (NYSE:SAIC) shareholders may be a little concerned to see that the Independent Director, John Hamre, recently sold a whopping US$864k worth of stock at a price of US$86.43 per share. That sale reduced their total holding by 43% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Science Applications International
In the last twelve months, the biggest single sale by an insider was when the insider, Anthony Moraco, sold US$2.4m worth of shares at a price of US$86.79 per share. So what is clear is that an insider saw fit to sell at around the current price of US$85.17. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
We note that in the last year insiders divested 71964 shares for a total of US$5.9m. Insiders in Science Applications International didn't buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Science Applications International Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Science Applications International insiders own about US$35m worth of shares. That equates to 0.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Science Applications International Tell Us?
An insider sold Science Applications International shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd think twice before buying! Of course, the future is what matters most. So if you are interested in Science Applications International, you should check out this free report on analyst forecasts for the company.
But note: Science Applications International 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.