Have Masimo Corporation (NASDAQ:MASI) Insiders Been Selling Their Stock?

We wouldn't blame Masimo Corporation (NASDAQ:MASI) shareholders if they were a little worried about the fact that Sanford Fitch, the Director recently netted about US$1.1m selling shares at an average price of US$150. That's a big dump, and it decreased their holding size by 13.7%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Masimo

In fact, the recent sale by Director Sanford Fitch was not their only sale of Masimo shares this year. Earlier in the year, they fetched US$150 per share in a -US$1.1m sale. So what is clear is that an insider saw fit to sell at around the current price of US$147. 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).

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!

Does Masimo Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Masimo insiders own about US$606m worth of shares (which is 7.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Masimo Insider Transactions Indicate?

An insider sold Masimo shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Masimo is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Masimo.

But note: Masimo 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, 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 editorial-team@simplywallst.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.