Have Insiders Sold Microchip Technology Incorporated (NASDAQ:MCHP) Shares Recently?

We'd be surprised if Microchip Technology Incorporated (NASDAQ:MCHP) shareholders haven't noticed that an insider, Mitchell Little, recently sold US$458k worth of stock at US$65.96 per share. Equally important, that sale actually reduced their holding by a full 53% which hardly makes us feel bullish about the stock.

However if you'd rather see where the opportunities and risks are within MCHP's industry, you can check out our analysis on the US Semiconductor industry.

Microchip Technology Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Ganesh Moorthy bought US$458k worth of shares at a price of US$57.70 per share. We do like to see buying, but this purchase was made at well below the current price of US$64.50. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

All up, insiders sold more shares in Microchip Technology than they bought, over 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Microchip Technology insiders own 2.0% of the company, currently worth about US$712m based on the recent share price. 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 Does This Data Suggest About Microchip Technology Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Microchip Technology insider transactions. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Microchip Technology. For example - Microchip Technology has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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.

Comments are closed.