Insiders were net buyers of Science Applications International Corporation’s (NYSE: SAIC) within the past year. That is, insiders bought more shares than they sold.
While we don’t think shareholders should just follow insider trading, logic dictates that you pay attention to whether insiders are buying or selling stocks.
Scientific applications International insider transactions in the past year
In the past twelve months, the biggest buy by an insider was when Executive Vice President and CFO Prabu Natarajan bought US $ 253,000 of shares at a price of US $ 84.31 per share. This means that an insider was happy to buy shares around the current price of US $ 88.99. While their opinion may have changed since the purchase, it at least suggests that they have confidence in the future of the business. If someone is buying stocks at prices well below current prices, that’s a good sign overall, but keep in mind that they may no longer see value. The good news for Science Applications International shareholders is that an insider was buying near the current price. The only individual insider to buy in the past year was Prabu Natarajan.
Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you want to know exactly who sold, for how much and when, just click on the graph below!
NYSE: SAIC Insider Trading Volume November 24, 2021
Science Applications International isn’t the only one buying stocks. So take a look at this free list of growing companies with insider buying.
Insider property of Science Applications International
I like to watch how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Insiders own 0.6% of the shares of Science Applications International, worth about $ 32 million. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what do Science Applications’ international insider trading indicate?
It doesn’t really mean much that no insiders have traded shares of Science Applications International in the past quarter. On a more positive note, the transactions of the past year are encouraging. Overall, we don’t see anything that could make us think that Science Applications International insiders are suspicious of the company and own stocks. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. In terms of investment risks, we have identified 2 warning signs with Science Applications International and understanding them should be part of your investment process.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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