Insiders At MACOM Technology Solutions Holdings Sold US$1.5m In Stock, Alluding To Potential Weakness

The fact that multiple MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Geoffrey Ribar, sold US$809k worth of shares at a price of US$122 per share. That means that even when the share price was slightly below the current price of US$122, 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. This single sale was just 36% of Geoffrey Ribar's stake.

In the last year MACOM Technology Solutions Holdings 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!

Check out our latest analysis for MACOM Technology Solutions Holdings

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Insider Ownership Of MACOM Technology Solutions Holdings

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that MACOM Technology Solutions Holdings insiders own 2.3% of the company, worth about US$207m. 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 Does This Data Suggest About MACOM Technology Solutions Holdings Insiders?

It doesn't really mean much that no insider has traded MACOM Technology Solutions Holdings shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the MACOM Technology Solutions Holdings insiders selling. Of course, the future is what matters most. So if you are interested in MACOM Technology Solutions Holdings, you should check out this free report on analyst forecasts for the company.

But note: MACOM Technology Solutions Holdings 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 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.