Have Monolithic Power Systems Insiders Been Selling Stock?

We wouldn't blame Monolithic Power Systems, Inc. (NASDAQ:MPWR) shareholders if they were a little worried about the fact that Michael Hsing, the Founder recently netted about US$8.4m selling shares at an average price of US$700. However, that sale only accounted for 1.2% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Monolithic Power Systems

The Last 12 Months Of Insider Transactions At Monolithic Power Systems

Over the last year, we can see that the biggest insider sale was by the EVP of Strategic Corporate Development, Saria Tseng, for US$32m worth of shares, at about US$825 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$699. So it may not shed much light on insider confidence at current levels.

In the last year Monolithic Power Systems insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Monolithic Power Systems 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Monolithic Power Systems insiders own 3.6% of the company, worth about US$1.2b. 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 Monolithic Power Systems Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since Monolithic Power Systems is profitable and growing, we're not too worried by this. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Monolithic Power Systems. At Simply Wall St, we've found that Monolithic Power Systems has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course Monolithic Power Systems may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.