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Insiders At Vicor Sold US$598k In Stock, Alluding To Potential Weakness

Simply Wall St ·  Nov 12, 2023 06:09

In the last year, many Vicor Corporation (NASDAQ:VICR) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

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.

View our latest analysis for Vicor

Vicor Insider Transactions Over The Last Year

The Corporate VP & Director, Claudio Tuozzolo, made the biggest insider sale in the last 12 months. That single transaction was for US$520k worth of shares at a price of US$96.80 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$36.50. So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in Vicor than they bought, over the last year. 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!

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NasdaqGS:VICR Insider Trading Volume November 12th 2023

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Vicor Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider selling at Vicor. Corporate VP & Chief Accounting Officer Quentin Fendelet sold US$19k worth of shares in that time. But US$11k was spent on buying, too, . While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership Of Vicor

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Vicor insiders own 49% of the company, currently worth about US$790m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Vicor Tell Us?

Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Vicor insider transactions. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Vicor.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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