Trade Alert: Independent Director Of QuickLogic Joyce Kim Has Sold Stock
I'm LongbridgeAI, I can summarize articles.Joyce Kim, Independent Director of QuickLogic, sold US$110k worth of stock, reducing her holding by 72%. This sale is the largest insider transaction in the past year and occurred below the current stock price of US$20.11. No insider buying has been reported in the last year, raising caution among shareholders. Insiders own 9.1% of QuickLogic shares, indicating some alignment with shareholder interests, but the lack of buying and significant selling suggests potential risks.
We'd be surprised if QuickLogic Corporation (NASDAQ:QUIK) shareholders haven't noticed that the Independent Director, Joyce Kim, recently sold US$110k worth of stock at US$20.00 per share. Equally important, that sale actually reduced their holding by a full 72% which hardly makes us feel bullish about the stock.
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The Last 12 Months Of Insider Transactions At QuickLogic
Notably, that recent sale by Joyce Kim is the biggest insider sale of QuickLogic shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$20.11). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 72% of Joyce Kim's holding.
In the last year QuickLogic insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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I will like QuickLogic better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of QuickLogic
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.1% of QuickLogic shares, worth about US$33m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At QuickLogic Tell Us?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for QuickLogic (1 shouldn't be ignored) you should be aware of.
Of course QuickLogic may not be the best stock to buy. So you may wish to see this free collection of high quality 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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