We'd be surprised if Littelfuse, Inc. (NASDAQ:LFUS) shareholders haven't noticed that the Senior VP & Chief Human Resources Officer, Maggie Chu, recently sold US$366k worth of stock at US$241 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.
The Last 12 Months Of Insider Transactions At Littelfuse
The Senior VP & GM of Electronics Business, Deepak Nayar, made the biggest insider sale in the last 12 months. That single transaction was for US$835k worth of shares at a price of US$260 each. So what is clear is that an insider saw fit to sell at around the current price of US$238. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Littelfuse insiders didn't buy any shares 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Littelfuse Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Littelfuse insiders own 1.6% of the company, worth about US$97m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Littelfuse Tell Us?
Insiders sold Littelfuse shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Littelfuse. Every company has risks, and we've spotted 1 warning sign for Littelfuse you should know about.
But note: Littelfuse 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.
