Yahoo Finance Synopsys Insiders Sold US$12m Of Shares Suggesting Hesitancy
Over the past year, many Synopsys, Inc. (NASDAQ:SNPS) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Synopsys
Synopsys Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Lead Independent Director, Roy Vallee, sold US$5.7m worth of shares at a price of US$573 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$515). So it may not tell us anything about how insiders feel about the current share price.
In total, Synopsys insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Synopsys better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Synopsys Insiders Are Selling The Stock
We've seen more insider selling than insider buying at Synopsys recently. We note insiders cashed in US$8.8m worth of shares. On the other hand we note insider Marc Casper bought US$439k worth of shares , as previously mentioned . Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Insider Ownership Of Synopsys
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Synopsys insiders own 0.6% of the company, currently worth about US$466m 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.
What Might The Insider Transactions At Synopsys Tell Us?
The insider sales have outweighed the insider buying, at Synopsys, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Synopsys 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. Every company has risks, and we've spotted 1 warning sign for Synopsys you should know about.
But note: Synopsys 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.
