We wouldn't blame Monolithic Power Systems, Inc. (NASDAQ:MPWR) shareholders if they were a little worried about the fact that Maurice Sciammas, the Senior Vice President of Worldwide Sales & Marketing recently netted about US$6.3m selling shares at an average price of US$315. However, that sale only accounted for 5.5% of their holding, so arguably it doesn't say much about their conviction.
Monolithic Power Systems Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Founder, Michael Hsing, sold US$13m worth of shares at a price of US$184 per share. That means that an insider was selling shares at slightly below the current price (US$357). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 4.9% of Michael Hsing's holding.
Insiders in Monolithic Power Systems didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership of Monolithic Power Systems
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Monolithic Power Systems insiders own 5.7% of the company, worth about US$908m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Monolithic Power Systems Tell Us?
Insiders sold Monolithic Power Systems 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, Monolithic Power Systems 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. While we like knowing 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. You'd be interested to know, that we found 3 warning signs for Monolithic Power Systems and we suggest you have a look.
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.
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