Don't Ignore The Insider Selling In Keysight Technologies

Keysight Technologies Inc +2.65%

Keysight Technologies Inc

KEYS

289.84

+2.65%

Some Keysight Technologies, Inc. (NYSE:KEYS) shareholders may be a little concerned to see that the Senior VP and President of Order Fulfillment & Digital Operations, Soon Gooi, recently sold a substantial US$2.2m worth of stock at a price of US$148 per share. However, that sale only accounted for 6.5% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Keysight Technologies

The Last 12 Months Of Insider Transactions At Keysight Technologies

In fact, the recent sale by Senior VP and President of Order Fulfillment & Digital Operations Soon Gooi was not their only sale of Keysight Technologies shares this year. Earlier in the year, they fetched US$162 per share in a -US$4.7m sale. So what is clear is that an insider saw fit to sell at around the current price of US$159. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year we saw more insider selling of Keysight Technologies shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:KEYS Insider Trading Volume December 16th 2023

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Keysight Technologies insiders own 0.6% of the company, worth about US$163m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Keysight Technologies Insider Transactions Indicate?

Insiders sold Keysight Technologies shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. At Simply Wall St, we found 1 warning sign for Keysight Technologies that deserve your attention before buying any shares.

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.