Many Adobe Inc. (NASDAQ:ADBE) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Adobe Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Shantanu Narayen, for US$14m worth of shares, at about US$546 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$387. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$1.5m for 3.55k shares. But they sold 64.26k shares for US$34m. Over the last year we saw more insider selling of Adobe shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Adobe

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

Adobe Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Adobe. Insiders spent US$1.5m on shares. But we did see Senior VP Jillian Forusz sell shares worth US$137k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Adobe Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Adobe insiders own 0.2% of the company, currently worth about US$268m based on the recent share price. 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 Adobe Insiders?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. Of course, the future is what matters most. So if you are interested in Adobe, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.