Some Tower Semiconductor Ltd. (NASDAQ:TSEM) shareholders may be a little concerned to see that the CEO & Director, Russell C. Ellwanger, recently sold a substantial US$8.5m worth of stock at a price of US$218 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Tower Semiconductor

In fact, the recent sale by Russell C. Ellwanger was the biggest sale of Tower Semiconductor shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$234. 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).

Russell C. Ellwanger ditched 66.96k shares over the year. The average price per share was US$215. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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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. Tower Semiconductor insiders own 0.4% of the company, currently worth about US$101m based on the recent share price. 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 Tower Semiconductor Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Tower Semiconductor is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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.

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.

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.