We wouldn't blame Dell Technologies Inc. (NYSE:DELL) shareholders if they were a little worried about the fact that Michael Dell, the Chairman & CEO recently netted about US$761m selling shares at an average price of US$134. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.
Dell Technologies Insider Transactions Over The Last Year
In fact, the recent sale by Michael Dell was the biggest sale of Dell Technologies shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$149). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 19% of Michael Dell's holding.
In the last year Dell Technologies insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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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. A high insider ownership often makes company leadership more mindful of shareholder interests. Dell Technologies insiders own about US$51b worth of shares (which is 50% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Dell Technologies Tell Us?
Insiders haven't bought Dell Technologies 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, Dell Technologies makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dell Technologies. In terms of investment risks, we've identified 3 warning signs with Dell Technologies and understanding these should be part of your investment process.
Of course Dell 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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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com