Lattice Semiconductor insiders sell $783K worth of stock, a sign of caution

A number of Lattice Semiconductor Corporation (NASDAQ:LSCC) insiders have sold shares in the past year, which may be of interest to the company’s shareholders. There are a variety of possible explanations for insider selling, so when assessing insider transactions it is usually more useful to know if insiders have been buying. However, if a large number of insiders have been selling then shareholders should investigate more closely.

While we don’t think shareholders should just keep track of insider transactions, logic dictates that they should pay attention to whether insiders are buying or selling shares.

Read our latest analysis for Lattice Semiconductor

Insider transactions at Lattice Semiconductor in the last 12 months

Insider Glenn O’Rourke made the biggest insider sale in the last 12 months. In this single transaction, US$646k worth of shares was sold at US$75.75 per share. We don’t generally like insider selling, but the lower the sale price, the more concerned we become. Fortunately, this large sale was made at a price significantly above the current price of US$44.79, so at current levels it may not have much of an impact on our insider confidence.

Lattice Semiconductor insiders haven’t been buying shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months below: If you want to see exactly who sold, for how much, and when, you can click on the chart below.

We might like Lattice Semiconductor even more if we see some significant insider buying. While we wait, check out this free list of undervalued and small-cap stocks that have seen significant, recent insider buying.

Does Lattice Semiconductor have high insider ownership?

Looking at insiders’ total shareholding in a company can help give you a view on whether they are well aligned with common shareholders. We think it’s a good sign when insiders own a significant number of shares in a company. Lattice Semiconductor insiders own 1.1% of the company, worth about US$71m. While this is a high, but not outstanding, level of insider ownership, it is enough to suggest that there is some alignment between management and small shareholders.

So what does this data tell us about Lattice Semiconductor insiders?

It’s not very meaningful that no insiders traded Lattice Semiconductor shares in the most recent quarter. Still, Lattice Semiconductor insider transactions over the last 12 months are not very encouraging. It’s at least somewhat reassuring to see that insider ownership is modest. If you’re like me, you might want to think about whether this company is likely to grow or shrink. Luckily, you can check this free report showing analyst forecasts for the company’s future.

If you would prefer to check out other companies with potentially superior financials, then do not miss this free list of interesting companies that have HIGH return on equity and low debt.

For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. Currently, we count only open market transactions and private dispositions of direct interests, not derivative transactions or indirect interests.

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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.