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$1.2b selling shares at an average price of US$117. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Dell Technologies

Notably, that recent sale by Michael Dell is the biggest insider sale of Dell Technologies shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$126). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 26% of Michael Dell's holding.

Insiders in Dell Technologies didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Dell Technologies Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Dell Technologies insiders own 48% of the company, worth about US$40b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Dell Technologies Insiders?

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. 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Dell Technologies.

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.