This insider just sold shares in International Business Machines Corporation (NYSE:IBM)

We would be surprised if International Business Machines Corporation (NYSE:IBM) shareholders failed to notice that an insider, Robert Del Bene, recently sold US$445,000 worth of stock at US$148 per share. That sale represented 17% of their stake, so it raises an eyebrow.

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Internal transactions of international business machines in the last year

In fact, the recent sale of Robert Del Bene was the largest sale of International Business Machines stock by an insider in the past twelve months, according to our records. This means that even when the share price was slightly lower than the current price of 149 US dollars, an insider wanted to cash out some shares. We generally view it as negative if insiders have sold, especially if they have done so below the current price, because it implies that they considered a lower price reasonable. Keep in mind, however, that sellers can have a variety of reasons for selling, so we don’t know for sure what they think about the stock price. It is worth noting that this sale represented only 17% of Robert Del Bene’s stake.

Over the past twelve months, insiders bought 1.08 thousand shares for US$135,000. But insiders sold 4,60,000 shares worth $668,000. Robert Del Bene sold a total of 4,60,000 shares for the year at an average price of $145. You can see the internal transactions (by companies and individuals) in the last year represented in the graph below. If you click on the chart, you can see all the individual transactions, including the share price, individual and date!

volume of insider trading
NYSE: IBM Insider Trading Volume November 25, 2022

I will like International Business Machines more if I see some great insider buys. While we wait, check this out free growing list of companies with recent sizable insider signings.

Internal property

Looking at the total insider holdings in a company can help tell if they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely the insiders are to have an incentive to build the company over the long term. International Business Machines insiders own 0.08 percent of the company, which is currently worth about $106 million based on its recent share price. Most shareholders would be happy to see this type of internal ownership, as it suggests management incentives are well aligned with other shareholders.

So what does this data on international business car insiders suggest?

Unfortunately, there have been more insider sales of International Business Machines shares in the past three months than there have been buys. Zooming out, the long-term picture doesn’t give us much comfort. The company has a lot of internal ownership, but we’re a little hesitant given the history of stock sales. While we like to know what’s going on with insider ownership and transactions, we also make sure to consider the risks a stock faces before making any investment decisions. For example, we have identified 5 Warning Signs for International Business Machines (1 cannot be ignored) that you should be aware of.

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For the purposes of this article, insiders are those who report their transactions to the appropriate regulatory body. We currently consider open market transactions and private dispositions, but not derivatives transactions.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using unbiased methodology only and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell stock and does not take into account your goals or financial situation. We aim to offer you long-term focused analysis driven by fundamental data. Please 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 of the stocks mentioned.

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