SkyWater Technology, Inc. (NASDAQ: SKYT) recently saw President & COO, John Sakamoto, divesting $108k worth of shares at an average price of $8.11 each, reducing his holding by 11%. This move raised eyebrows as it was the largest sale by an insider in the company over the last twelve months. This suggests that Sakamoto felt that the lower price was fair, even though it was slightly below the current price of $8.24. While insider selling can be seen as a weak signal, it is important to note that insiders did not make any purchases in the past year.
Insiders currently own 25% of SkyWater Technology, with their holdings valued at approximately $101m based on the recent share price. This significant ownership by insiders usually indicates that the company is aligned with the interests of common shareholders. However, the recent insider selling has left some cautious, especially since there have been no insider purchases in the last year.
While insider transactions can provide insights into a company’s performance, it is also important to consider the risks facing the company. In this case, there is one warning sign for SkyWater Technology that investors should be aware of. It is always recommended to conduct thorough research and consider all factors before making investment decisions.
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