We note that the NVE Corporation (NASDAQ:NVEC) CEO, President & Director, Daniel Baker, recently sold US$93k worth of stock for US$73.89 per share. On the bright side, that's just a small sale and only reduced their holding by 2.1%.

NVE Insider Transactions Over The Last Year

In fact, the recent sale by Daniel Baker was the biggest sale of NVE shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$67.49. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like NVE better if I see some big insider buys.

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. We usually like to see fairly high levels of insider ownership. Our data suggests NVE insiders own 1.3% of the company, worth about US$4.6m. We consider this fairly low insider ownership.

So What Does This Data Suggest About NVE Insiders?

An insider sold NVE shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NVE.

But note: NVE 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.