We wouldn’t blame MaxLinear, Inc. (NYSE:MXL) shareholders if they were a little worried about the fact that Michael Lachance, the Vice President of Operations recently netted about US$752k selling shares at an average price of US$21.91. Probably the most concerning element of the whole transaction is that the dump amounted to 60.8% of their entire holding.
MaxLinear Insider Transactions Over The Last Year
In fact, the recent sale by Michael Lachance was the biggest sale of MaxLinear shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$20.96. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
All up, insiders sold more shares in MaxLinear than they bought, over 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!
Insider Ownership of MaxLinear
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 MaxLinear insiders own 9.2% of the company, worth about US$138m. 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 Do The MaxLinear Insider Transactions Indicate?
An insider hasn’t bought MaxLinear stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn’t bring confidence, either. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. 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.
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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.