Despite the fact that indie Semiconductor, Inc.'s (NASDAQ:INDI) value has dropped 24% in the last week insiders who sold US$446k worth of stock in the past 12 months have had less success. The average selling price of US$5.04 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

The Last 12 Months Of Insider Transactions At indie Semiconductor

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Donald McClymont, for US$377k worth of shares, at about US$4.72 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$3.97). So it may not shed much light on insider confidence at current levels.

In the last year indie Semiconductor 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!

I will like indie Semiconductor 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.

Insiders At indie Semiconductor Have Sold Stock Recently

The last three months saw significant insider selling at indie Semiconductor. In total, Co-Founder Donald McClymont sold US$377k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of indie Semiconductor

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. indie Semiconductor insiders own about US$18m worth of shares. That equates to 2.2% 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.

So What Do The indie Semiconductor Insider Transactions Indicate?

An insider sold indie Semiconductor shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing indie Semiconductor. Every company has risks, and we've spotted 4 warning signs for indie Semiconductor (of which 1 makes us a bit uncomfortable!) you should know about.

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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