Some Analog Devices, Inc. (NASDAQ:ADI) shareholders may be a little concerned to see that the Co-Founder & Director, Raymond Stata, recently sold a substantial US$1.1m worth of stock at a price of US$378 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.4%.

Analog Devices Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO & Chair of the Board of Directors, Vincent Roche, sold US$5.1m worth of shares at a price of US$255 per share. That means that an insider was selling shares at slightly below the current price (US$390). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. We note that the biggest single sale was only 14% of Vincent Roche's holding.

In the last year Analog Devices 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. 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: Most of them are flying under the radar).

Does Analog Devices Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Analog Devices insiders own 0.2% of the company, worth about US$427m. 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 Analog Devices Tell Us?

Insiders haven't bought Analog Devices 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, Analog Devices makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

But note: Analog Devices 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.

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.