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Don't Ignore The Insider Selling In MACOM Technology Solutions Holdings

Simply Wall St ·  May 31 19:18

Some MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) shareholders may be a little concerned to see that the Director, Susan Ocampo, recently sold a substantial US$12m worth of stock at a price of US$103 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.7%.

The Last 12 Months Of Insider Transactions At MACOM Technology Solutions Holdings

Notably, that recent sale by Susan Ocampo is the biggest insider sale of MACOM Technology Solutions Holdings shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$101. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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.

In the last year MACOM Technology Solutions Holdings insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:MTSI Insider Trading Volume May 31st 2024

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of MACOM Technology Solutions Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that MACOM Technology Solutions Holdings insiders own 0.4% of the company, worth about US$29m. 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 Do The MACOM Technology Solutions Holdings Insider Transactions Indicate?

Insiders sold MACOM Technology Solutions Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for MACOM Technology Solutions Holdings that deserve your attention before buying any shares.

Of course MACOM Technology Solutions Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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