Have SiTime Insiders Been Selling Stock?

We wouldn't blame SiTime Corporation (NASDAQ:SITM) shareholders if they were a little worried about the fact that Rajesh Vashist, the Chairman recently netted about US$3.1m selling shares at an average price of US$259. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.1%.

View our latest analysis for SiTime

SiTime Insider Transactions Over The Last Year

Notably, that recent sale by Chairman Rajesh Vashist was not the only time they sold SiTime shares this year. Earlier in the year, they fetched US$170 per share in a -US$3.4m sale. That means that even when the share price was below the current price of US$227, 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 8.3% of Rajesh Vashist's holding.

SiTime insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like SiTime better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does SiTime Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. SiTime insiders own about US$103m worth of shares (which is 1.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The SiTime Insider Transactions Indicate?

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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SiTime. For example - SiTime has 3 warning signs we think you should be aware of.

But note: SiTime 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.