Have Insiders Sold Power Integrations Shares Recently?
Some Power Integrations, Inc. (NASDAQ:POWI) shareholders may be a little concerned to see that the President, Jennifer Lloyd, recently sold a substantial US$936k worth of stock at a price of US$73.73 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 8.5%.
The Last 12 Months Of Insider Transactions At Power Integrations
The insider, Balu Balakrishnan, made the biggest insider sale in the last 12 months. That single transaction was for US$11m worth of shares at a price of US$87.05 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$63.41). So it may not tell us anything about how insiders feel about the current share price.
Insiders in Power Integrations didn't buy any shares in 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!
Check out our latest analysis for Power Integrations
I will like Power Integrations 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
For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Power Integrations insiders own 1.7% of the company, worth about US$59m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Power Integrations Tell Us?
Insiders sold Power Integrations shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 5 warning signs with Power Integrations and understanding these should be part of your investment process.
But note: Power Integrations 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.