Even though Lattice Semiconductor Corporation (NASDAQ:LSCC) has fallen by 10% over the past week , insiders who sold US$1.3m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$62.61 is still below the current share price.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Our free stock report includes 3 warning signs investors should be aware of before investing in Lattice Semiconductor. Read for free now.The Last 12 Months Of Insider Transactions At Lattice Semiconductor
The Independent Director, Robin Abrams, made the biggest insider sale in the last 12 months. That single transaction was for US$640k worth of shares at a price of US$63.97 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$41.59. So it is hard to draw any strong conclusion from it.
Insiders in Lattice Semiconductor didn't buy any shares in the last year. 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!
Check out our latest analysis for Lattice Semiconductor
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insiders At Lattice Semiconductor Have Sold Stock Recently
The last quarter saw substantial insider selling of Lattice Semiconductor shares. In total, insiders sold US$935k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Lattice Semiconductor insiders own about US$82m worth of shares. That equates to 1.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Lattice Semiconductor Insiders?
Insiders sold Lattice Semiconductor shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. In terms of investment risks, we've identified 3 warning signs with Lattice Semiconductor and understanding these should be part of your investment process.
But note: Lattice Semiconductor 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.
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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.