Have Insiders Sold Micron Technology Shares Recently?

We wouldn't blame Micron Technology, Inc. (NASDAQ:MU) shareholders if they were a little worried about the fact that Sumit Sadana, the Executive VP & Chief Business Officer recently netted about US$14m selling shares at an average price of US$934. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.7%.

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Micron Technology Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Chairman, Sanjay Mehrotra, sold US$46m worth of shares at a price of US$1,192 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$938. So it may not shed much light on insider confidence at current levels.

In total, Micron Technology insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Micron Technology

I will like Micron Technology 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.

Insider Ownership Of Micron Technology

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Micron Technology insiders own 0.2% of the company, worth about US$2.3b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Micron Technology Insider Transactions Indicate?

Insiders sold Micron Technology shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Micron Technology 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Micron Technology. Be aware that Micron Technology is showing 3 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

But note: Micron Technology 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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.

Designs, develops, manufactures, and sells memory and storage products in the United States, Taiwan, Japan, Mainland China, Hong Kong, Europe, and internationally.

Exceptional growth potential with flawless balance sheet.