Dell Insiders Sold Around $33 Million Worth of Company Stock
A closer look at the insider transactions of Dell Technologies (DELL) has shown a rather interesting insight - Around $33 million worth of company stock was sold by the insiders who might be an indication of upcoming weakness.
When it comes to finding results from insider transactions, it is more beneficial to know how many insider transactions are bought and how many are sold. But when a large number of transactions are selling, it raises the need for further investigation.
In general, insider transactions shouldn't be paid a lot of attention. But when so many insiders join one particular side, then investors should pay attention.
Insider Transactions For 1 Year (12 Months)
If we look at the insider transactions at Dell for the last 1 year, the biggest sale was from the president William Scannell. He sold around $8.8 million worth of Dell shares at the market price of $57/share.
Considering how the sale was made at a rather lower price range, it raises concern about the intentions of this sale.
Another interesting fact was that no insider at Dell bought company shares last year. It is actually very easy to view the insider transactions of any public company through various websites.
Another person from Dell, who is a Senior officer of Corporate Finance, sold around $340,000 worth of Dell shares. When we checked for any purchases during the same period, nothing was found.
Now many people will wonder about the significance of insider transactions. Let's assume that you work for a company called ABC. If you believed that the company would perform exceptionally well in the future, would you buy company shares? Would you continue to hold ABC company shares in anticipation of a price appreciation? Well it would only happen if your forecast for the company is positive.
But if you believed that the company isn't going to perform well going forward, you would offload your shares at a good price.