We wouldn't blame Sanmina Corporation (NASDAQ:SANM) shareholders if they were a little worried about the fact that Joseph Licata, the Independent Director recently netted about US$2.3m selling shares at an average price of US$60.50. Probably the most concerning element of the whole transaction is that the disposal amounted to 51% of their entire holding.

The Last 12 Months Of Insider Transactions At Sanmina

Notably, that recent sale by Joseph Licata is the biggest insider sale of Sanmina shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$58.20. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Sanmina didn't buy any shares in 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

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. Sanmina insiders own about US$103m worth of shares (which is 3.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Sanmina Insiders?

Insiders sold Sanmina shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Sanmina makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Sanmina has 1 warning sign and it would be unwise to ignore it.

Of course Sanmina may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.