Anyone interested in Everspin Technologies, Inc. (NASDAQ:MRAM) should probably be aware that the President, Sanjeev Aggarwal, recently divested US$259k worth of shares in the company, at an average price of US$10.22 each. However, the silver lining is that the sale only reduced their total holding by 8.2%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At Everspin Technologies

Notably, that recent sale by Sanjeev Aggarwal is the biggest insider sale of Everspin Technologies shares that we've seen in the last year. That means that even when the share price was below the current price of US$12.02, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 8.2% of Sanjeev Aggarwal's holding.

In the last year Everspin Technologies insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Everspin Technologies better if I see some big insider buys.

Insider Ownership Of Everspin Technologies

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 appears that Everspin Technologies insiders own 6.4% of the company, worth about US$17m. 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 Does This Data Suggest About Everspin Technologies Insiders?

Insiders haven't bought Everspin Technologies 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're in no rush to buy! 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Everspin Technologies.

But note: Everspin Technologies 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.