Investors may have been taken aback by the news that some insiders of Agilent Technologies, Inc. (NYSE:A) sold off a sizable number of shares during the previous year. When analysing insider transactions, knowing if insiders are purchasing is typically more beneficial because there are several reasons why insider selling might occur. Nonetheless, investors want to look into this more if a large number of insiders are selling.
Although we would never advocate for investors to make their judgements only based on the actions of a company’s directors, we do believe it makes perfect sense to monitor insider activity.
The largest insider transaction over the last year was carried out by Henrik Ancher-Jensen, Senior VP and President of Order Fulfilment & Supply Chain, for US$4.6 million in shares, or almost US$156 per share. Although insider selling is bad, we believe it is worse if the shares are sold for less money. Good news: this massive deal was made for far more than the going rate of US$127. Therefore, it might not provide any insight into insiders’ opinions on the present share price.
Insiders at Agilent Technologies have not purchased any shares in the past 12 months. The following graphic displays insider transactions during the past year, broken down by both persons and corporations.
It is a good idea for an ordinary shareholder to find out how many shares are owned by corporate insiders. Leadership in a corporation is frequently more aware of shareholder interests when insider ownership is strong. Insiders at Agilent Technologies hold shares worth around US$125 million, or 0.3% of the firm. This degree of insider ownership is something I prefer to see since it suggests that management is more likely to be considering the interests of shareholders.