Even though GSI Technology, Inc. (NASDAQ:GSIT) has fallen by 17% over the past week , insiders who sold US$154k worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$7.78 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

GSI Technology Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Ping Wu, sold US$127k worth of shares at a price of US$10.80 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$6.44. So it is hard to draw any strong conclusion from it.

GSI Technology insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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GSI Technology Insiders Are Selling The Stock

The last three months saw significant insider selling at GSI Technology. Specifically, insider Ping Wu ditched US$127k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does GSI Technology Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that GSI Technology insiders own 17% of the company, worth about US$44m. 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 GSI Technology Insider Transactions Indicate?

An insider hasn't bought GSI Technology stock in the last three months, but there was some selling. 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. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GSI Technology. Be aware that GSI Technology is showing 3 warning signs in our investment analysis, and 2 of those can't be ignored...

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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.