BARBARA NELSON, Board Member at GSI Technology (NASDAQ:GSIT), reported a large exercise of company stock options on October 31, according to a new SEC filing.

GSI Technology shares are trading down 2.03% at $1.93 at the time of this writing on Wednesday morning. Since the current price is $1.93, this makes NELSON's 28,795 shares worth $55,577.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Check Out The Full List Of GSI Technology's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.