We’d be surprised if Maxim Integrated Products, Inc. (NASDAQ:MXIM) shareholders haven’t noticed that an insider, Jon Imperato, recently sold US$122k worth of stock at US$55.29 per share. On the bright side, that sale was only 3.9% of their holding, so we doubt it’s very meaningful, on its own.
Maxim Integrated Products Insider Transactions Over The Last Year
The insider, Bruce Kiddoo, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$60.00 each. So what is clear is that an insider saw fit to sell at around the current price of US$57.30. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
We note that in the last year insiders divested 123420 shares for a total of US$7.0m. Insiders in Maxim Integrated Products didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Maxim Integrated Products
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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’s great to see that Maxim Integrated Products insiders own 0.8% of the company, worth about US$120m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Maxim Integrated Products Tell Us?
Insiders sold Maxim Integrated Products shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. On the plus side, Maxim Integrated Products makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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