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Many Monolithic Power Systems, Inc. (NASDAQ:MPWR) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Monolithic Power Systems
Monolithic Power Systems Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the EVP of Strategic Corporate Development, Saria Tseng, sold US$32m worth of shares at a price of US$825 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$672. So it may not tell us anything about how insiders feel about the current share price.
In the last year Monolithic Power Systems 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Monolithic Power Systems 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.
Insiders At Monolithic Power Systems Have Sold Stock Recently
The last three months saw significant insider selling at Monolithic Power Systems. In total, insiders sold US$25m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Monolithic Power Systems Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Monolithic Power Systems insiders own 3.5% of the company, currently worth about US$1.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Monolithic Power Systems Tell Us?
Insiders sold Monolithic Power Systems shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Monolithic Power Systems is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Monolithic Power Systems. At Simply Wall St, we've found that Monolithic Power Systems has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.