Have Insiders Sold Littelfuse Shares Recently?

Some Littelfuse, Inc. (NASDAQ:LFUS) shareholders may be a little concerned to see that the Independent Director, Anthony Grillo, recently sold a substantial US$1.4m worth of stock at a price of US$452 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.4%.

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Littelfuse Insider Transactions Over The Last Year

In fact, the recent sale by Independent Director Anthony Grillo was not their only sale of Littelfuse shares this year. Earlier in the year, they fetched US$348 per share in a -US$1.7m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$472. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 6.6% of Anthony Grillo's holding.

In the last year Littelfuse 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!

Check out our latest analysis for Littelfuse

I will like Littelfuse 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 Littelfuse

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Littelfuse insiders own 1.1% of the company, worth about US$125m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Littelfuse Insiders?

Insiders sold Littelfuse shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Littelfuse. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Littelfuse.

Of course Littelfuse 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.