Insiders were net sellers of Gen Digital Inc.'s (NASDAQ:GEN ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Gen Digital Insider Transactions Over The Last Year

The EVP, CFO & Principal Accounting Officer, Natalie Derse, made the biggest insider sale in the last 12 months. That single transaction was for US$4.1m worth of shares at a price of US$24.31 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$25.24. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 51% of Natalie Derse's holding. Natalie Derse was the only individual insider to sell shares in the last twelve months.

Natalie Derse sold a total of 170.76k shares over the year at an average price of US$24.29. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Gen Digital Have Sold Stock Recently

The last quarter saw substantial insider selling of Gen Digital shares. Specifically, EVP, CFO & Principal Accounting Officer Natalie Derse ditched US$4.1m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Gen Digital Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Gen Digital insiders own 9.2% of the company, worth about US$1.5b. 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 Gen Digital Insider Transactions Indicate?

An insider sold Gen Digital shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Gen Digital has 5 warning signs (and 1 which shouldn't be ignored) we think you should know about.

But note: Gen Digital 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com