Stock Analysis

This Insider Has Just Sold Shares In Power Integrations, Inc. (NASDAQ:POWI)

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Investors may wish to note that the Vice President of Worldwide Sales of Power Integrations, Inc., Yang-Chiah Yee, recently netted US$73k from selling stock, receiving an average price of US$89.06. On the bright side, that's just a small sale and only reduced their holding by 3.2%.

Check out our latest analysis for Power Integrations

The Last 12 Months Of Insider Transactions At Power Integrations

Over the last year, we can see that the biggest insider sale was by the President, Balu Balakrishnan, for US$4.0m worth of shares, at about US$85.27 per share. That means that an insider was selling shares at slightly below the current price (US$87.97). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 11% of Balu Balakrishnan's holding.

Insiders in Power Integrations didn't buy any shares in the last year. 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!

NasdaqGS:POWI Insider Trading Volume February 7th 2023

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Power Integrations Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Power Integrations insiders own about US$91m worth of shares. That equates to 1.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Power Integrations Insider Transactions Indicate?

Insiders sold Power Integrations shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Power Integrations is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. Every company has risks, and we've spotted 2 warning signs for Power Integrations (of which 1 is a bit unpleasant!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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