This Insider Has Just Sold Shares In Power Integrations, Inc. (NASDAQ:POWI)
We'd be surprised if Power Integrations, Inc. (NASDAQ:POWI) shareholders haven't noticed that the Independent Director, Nicholas Brathwaite, recently sold US$196k worth of stock at US$92.12 per share. However, the silver lining is that the sale only reduced their total holding by 7.9%, so we're hesitant to read anything much into it, on its own.
View 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 CFO & VP of Finance, Sandeep Nayyar, for US$1.8m worth of shares, at about US$90.50 per share. That means that an insider was selling shares at slightly below the current price (US$93.07). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 26% of Sandeep Nayyar's stake.
In total, Power Integrations insiders sold more than they bought over the last year. They sold for an average price of about US$76.01. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Power Integrations better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.5% of Power Integrations shares, worth about US$97m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Power Integrations Insider Transactions Indicate?
Insiders sold Power Integrations shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Power Integrations is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! Of course, the future is what matters most. So if you are interested in Power Integrations, you should check out this free report on analyst forecasts for the company.
Of course Power Integrations 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
