As Silicon Laboratories Inc.'s (NASDAQ:SLAB)) market cap dropped by US$348m, insiders who sold US$2.8m worth of stock were able to offset their losses

Insiders at Silicon Laboratories Inc. (NASDAQ:SLAB) sold US$2.8m worth of stock at an average price of US$174 a share over the past year, making the most of their investment. The company's market worth decreased by US$348m over the past week after the stock price dropped 6.2%, although insiders were able to minimize their losses

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Silicon Laboratories

Silicon Laboratories Insider Transactions Over The Last Year

The Independent Chairman, Navdeep Sooch, made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$159 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$143. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Silicon Laboratories didn't buy any shares in 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Silicon Laboratories

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Silicon Laboratories insiders own 2.1% of the company, currently worth about US$110m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Silicon Laboratories Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Silicon Laboratories insiders selling. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Silicon Laboratories may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.