Don't Ignore The Insider Selling In MACOM Technology Solutions Holdings

Some MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) shareholders may be a little concerned to see that the Chairman of the Board, John Ocampo, recently sold a substantial US$18m worth of stock at a price of US$81.93 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.3%.

View our latest analysis for MACOM Technology Solutions Holdings

The Last 12 Months Of Insider Transactions At MACOM Technology Solutions Holdings

In fact, the recent sale by John Ocampo was the biggest sale of MACOM Technology Solutions Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$83.09, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 1.3%of John Ocampo's holding.

In the last year MACOM Technology Solutions Holdings insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

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. MACOM Technology Solutions Holdings insiders own about US$1.4b worth of shares (which is 24% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The MACOM Technology Solutions Holdings Insider Transactions Indicate?

Insiders haven't bought MACOM Technology Solutions Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 2 warning signs for MACOM Technology Solutions Holdings you should be aware of.

Of course MACOM Technology Solutions Holdings 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.