Have Power Integrations Insiders Been Selling Stock?

We wouldn't blame Power Integrations, Inc. (NASDAQ:POWI) shareholders if they were a little worried about the fact that Douglas Bailey, the Vice President of Marketing recently netted about US$555k selling shares at an average price of US$64.96. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.0%.

See our latest analysis for Power Integrations

The Last 12 Months Of Insider Transactions At Power Integrations

In the last twelve months, the biggest single sale by an insider was when the President, Balu Balakrishnan, sold US$3.7m worth of shares at a price of US$77.60 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$62.11. So it is hard to draw any strong conclusion from it.

Power Integrations insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Power Integrations

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Power Integrations insiders own about US$63m worth of shares. That equates to 1.8% of the company. 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. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Power Integrations that deserve your attention before buying any shares.

But note: Power Integrations 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.