Insiders were net sellers of Gen Digital Inc.’s (NASDAQ:GEN ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Gen Digital

Gen Digital Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the EVP, CFO & Principal Accounting Officer, Natalie Derse, sold US$4.1m worth of shares at a price of US$24.31 per share. That means that an insider was selling shares at slightly below the current price (US$26.06). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was 51% of Natalie Derse’s holding. The only individual insider seller over the last year was Natalie Derse.

Natalie Derse divested 170.76k shares over the last 12 months at an average price of US$24.29. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Gen Digital Have Sold Stock Recently

The last three months saw significant insider selling at Gen Digital. In total, EVP, CFO & Principal Accounting Officer Natalie Derse dumped US$4.1m worth of shares in that time, and we didn’t record any purchases whatsoever. In light of this it’s hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Gen Digital

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Gen Digital insiders own about US$1.5b worth of shares (which is 9.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Gen Digital Insider Transactions Indicate?

An insider hasn’t bought Gen Digital stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Gen Digital. Our analysis shows 5 warning signs for Gen Digital (1 is potentially serious!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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