We wouldn't blame Viavi Solutions Inc. (NASDAQ:VIAV) shareholders if they were a little worried about the fact that Richard Belluzzo, the Independent Chairman recently netted about US$2.7m selling shares at an average price of US$53.30. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Viavi Solutions

In the last twelve months, the biggest single sale by an insider was when the President, Oleg Khaykin, sold US$3.7m worth of shares at a price of US$26.48 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$53.97. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 7.3% of Oleg Khaykin's holding.

In the last year Viavi Solutions insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Viavi Solutions better if I see some big insider buys.

Insider Ownership Of Viavi Solutions

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Viavi Solutions insiders own 1.3% of the company, worth about US$163m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Viavi Solutions Tell Us?

Insiders sold Viavi Solutions shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Be aware that Viavi Solutions is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...

But note: Viavi Solutions 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.