We wouldn’t blame Power Integrations, Inc. (NASDAQ:POWI) shareholders if they were a little worried about the fact that Balu Balakrishnan, the Director recently netted about US$11m selling shares at an average price of US$86.44. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we’ve seen.
The Last 12 Months Of Insider Transactions At Power Integrations
In fact, the recent sale by Balu Balakrishnan was the biggest sale of Power Integrations shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$84.00. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Power Integrations
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Does Power Integrations 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. We usually like to see fairly high levels of insider ownership. Power Integrations insiders own about US$89m worth of shares. That equates to 1.9% 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 Does This Data Suggest About Power Integrations Insiders?
Insiders haven’t bought Power Integrations stock in the last three months, but there was some selling. And even if we look at the last year, we didn’t see any purchases. Insiders own shares, but we’re still pretty cautious, given the history of sales. So we’d only buy after careful consideration. While it’s good to be aware of 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 3 warning signs for Power Integrations you should know about.
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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.