Have Insiders Sold Power Integrations Shares Recently?

We'd be surprised if Power Integrations, Inc. (NASDAQ:POWI) shareholders haven't noticed that the Chief Technology Officer & VP, David M. Matthews, recently sold US$417k worth of stock at US$76.14 per share. That sale was 10% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Power Integrations

Power Integrations Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Balu Balakrishnan, sold US$1.9m worth of shares at a price of US$89.85 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. The good news is that this large sale was at well above current price of US$77.21. So it is hard to draw any strong conclusion from it.

In the last year Power Integrations insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Power Integrations insiders own 1.9% of the company, worth about US$82m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Power Integrations Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Power Integrations you should know about.

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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.