Some KLA Corporation (NASDAQ:KLAC) shareholders may be a little concerned to see that the President, Richard Wallace, recently sold a substantial US$8.1m worth of stock at a price of US$1,794 per share. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At KLA

Notably, that recent sale by Richard Wallace is the biggest insider sale of KLA shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$1,893. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 20% of Richard Wallace's holding.

Insiders in KLA didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does KLA Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that KLA insiders own 0.09% of the company, worth about US$212m. 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 KLA Insider Transactions Indicate?

Insiders sold KLA shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, KLA makes money, and is growing profits. 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.

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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.