Some Microchip Technology Incorporated (NASDAQ:MCHP) shareholders may be a little concerned to see that the Executive Chair, Stephen Sanghi, recently sold a substantial US$3.4m worth of stock at a price of US$93.10 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 0.4%.
The Last 12 Months Of Insider Transactions At Microchip Technology
Notably, that recent sale by Stephen Sanghi is the biggest insider sale of Microchip Technology shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$88.84. 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.
In the last year Microchip Technology 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 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).
Does Microchip Technology Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Microchip Technology insiders own about US$1.0b worth of shares (which is 2.1% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Microchip Technology Insiders?
Insiders sold Microchip Technology shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Microchip Technology is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Microchip Technology. For instance, we've identified 3 warning signs for Microchip Technology (1 can't be ignored) you should be aware of.
Of course Microchip Technology 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.
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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.