This Insider Has Just Sold Shares In International Business Machines Corporation (NYSE:IBM)

We’d be surprised if International Business Machines Corporation (NYSE:IBM) shareholders haven’t noticed that an insider, Robert Del Bene, recently sold US$445k worth of stock at US$148 per share. That sale was 17% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for International Business Machines

International Business Machines Insider Transactions Over The Last Year

In fact, the recent sale by Robert Del Bene was the biggest sale of International Business Machines shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$149, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 17% of Robert Del Bene’s holding.

In the last twelve months insiders purchased 1.08k shares for US$135k. But insiders sold 4.60k shares worth US$668k. Robert Del Bene sold a total of 4.60k shares over the year at an average price of US$145. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:IBM Insider Trading Volume November 25th 2022

I will like International Business Machines better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. International Business Machines insiders own 0.08% of the company, currently worth about US$106m based on the recent share price. 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 Does This Data Suggest About International Business Machines Insiders?

Unfortunately, there has been more insider selling of International Business Machines stock, than buying, in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we’ve identified 5 warning signs for International Business Machines (1 can’t be ignored) you should be aware of.

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, but not derivative transactions.

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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.