Anyone interested in International Society for Applications of Science (NYSE:SAIC) should probably know that independent director Katharina McFarland recently sold $243,000 worth of company stock, at an average price of $93.30 each. This sale was 25% of their stake, so that raises our eyebrows.
See our latest analysis for Science Applications International
The last 12 months of insider trading at Science Applications International
The independent director, Timothy Mayopoulos, had the biggest insider sale in the last 12 months. This single transaction was for US$596,000 of shares at a price of US$93.75 each. So what is clear is that an insider saw fit to sell at around the current price of US$91.50. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. We note that this sale took place around the current price, so it is not a major concern, although it is hardly a good sign.
In total, insiders sold more shares of Science Applications International than they bought in the past year. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
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Does Science Applications International boast of high insider ownership?
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders at Science Applications International own approximately $31 million in stock. This equates to 0.6% of the business. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
So what do international insider trading in science applications indicate?
An insider recently sold shares, but did not buy. And our longer-term analysis of insider trading didn’t provide confidence either. But it’s good to see that Science Applications International is growing its revenue. Although the insiders own shares, they don’t own a whole lot and they sold. We are in no rush to buy! So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. At Simply Wall St, we have found that Science Applications International has 3 warning signs (1 is worrying!) which deserve your attention before going further in your analysis.
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For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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