We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
The Last 12 Months Of Insider Transactions At MACOM Technology Solutions Holdings
Chairman of the Board John Ocampo made the biggest insider purchase in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$13.35 each. We do like to see buying, but this purchase was made at well below the current price of US$24.28. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at MACOM Technology Solutions Holdings Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at MACOM Technology Solutions Holdings. In total, Independent Director Charles Bland sold US$80k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does MACOM Technology Solutions Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that MACOM Technology Solutions Holdings insiders own 31% of the company, worth about US$488m. 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 MACOM Technology Solutions Holdings Insider Transactions Indicate?
An insider hasn't bought MACOM Technology Solutions Holdings stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for MACOM Technology Solutions Holdings.
But note: MACOM Technology Solutions Holdings 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, but not derivative transactions.
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