The fact that multiple Marvell Technology, Inc. (NASDAQ:MRVL) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Marvell Technology

Over the last year, we can see that the biggest insider sale was by the President of Products & Technologies, Muhammad Hussain, for US$12m worth of shares, at about US$80.50 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$70.49. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 17.43k shares for US$1.3m. But insiders sold 282.51k shares worth US$22m. All up, insiders sold more shares in Marvell Technology than they bought, over the last year. 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!

View our latest analysis for Marvell Technology

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At Marvell Technology Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Marvell Technology. In that time, Lead Independent Director Michael Strachan dumped US$613k worth of shares. On the other hand we note Independent Director Bradley Buss bought US$207k worth of shares. We don't view these transactions as a positive sign.

Insider Ownership Of Marvell Technology

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Marvell Technology insiders own about US$180m worth of shares (which is 0.3% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Marvell Technology Insiders?

The stark truth for Marvell Technology is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Marvell Technology you should be aware of.

But note: Marvell Technology may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.