One NXP Semiconductors Insider Has Reduced Their Stake #CanadaFinance

From what we can see, insiders were net sellers in NXP Semiconductors N.V.’s (NASDAQ:NXPI ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for NXP Semiconductors

Over the last year, we can see that the biggest insider sale was by the President, Kurt Sievers, for US$2.4m worth of shares, at about US$276 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. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$201. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Kurt Sievers.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like NXP Semiconductors better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. NXP Semiconductors insiders own about US$68m worth of shares. That equates to 0.1% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

The fact that there have been no NXP Semiconductors insider transactions recently certainly doesn’t bother us. Still, the insider transactions at NXP Semiconductors in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 1 warning sign for NXP Semiconductors you should be aware of.