Some Vicor Corporation (NASDAQ:VICR) shareholders may be a little concerned to see that the Director, Samuel Anderson, recently sold a substantial US$524k worth of stock at a price of US$253 per share. That's a big disposal, and it decreased their holding size by 34%, which is notable but not too bad.

Vicor Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Patrizio Vinciarelli, for US$13m worth of shares, at about US$343 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$190). So it may not tell us anything about how insiders feel about the current share price.

In the last year Vicor insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Vicor 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 Vicor insiders own 44% of the company, worth about US$4.1b. 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 Vicor Insider Transactions Indicate?

Insiders haven't bought Vicor stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Vicor is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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, Vicor has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

But note: Vicor 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.