Some Texas Instruments Incorporated (NASDAQ:TXN) shareholders may be a little concerned to see that the Independent Director, Mark Blinn, recently sold a substantial US$4.2m worth of stock at a price of US$278 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

The Last 12 Months Of Insider Transactions At Texas Instruments

Notably, that recent sale by Mark Blinn is the biggest insider sale of Texas Instruments shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$281). 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. 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 100% of Mark Blinn's holding.

Insiders in Texas Instruments 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Texas Instruments better if I see some big insider buys.

Does Texas Instruments Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Texas Instruments insiders own 0.1% of the company, currently worth about US$274m 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.

So What Does This Data Suggest About Texas Instruments Insiders?

Insiders haven't bought Texas Instruments 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. But it is good to see that Texas Instruments is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Texas Instruments has 3 warning signs (and 1 which is potentially serious) we think you should know about.

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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.