Many Monolithic Power Systems, Inc. (NASDAQ:MPWR) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Monolithic Power Systems

The EVP of Strategic Corporate Development, Saria Tseng, made the biggest insider sale in the last 12 months. That single transaction was for US$32m worth of shares at a price of US$825 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$627. So it may not shed much light on insider confidence at current levels.

Monolithic Power Systems insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Monolithic Power Systems NasdaqGS:MPWR Insider Trading Volume May 6th 2025

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Insiders At Monolithic Power Systems Have Sold Stock Recently

The last quarter saw substantial insider selling of Monolithic Power Systems shares. In total, insiders sold US$21m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Monolithic Power Systems insiders own 3.4% of the company, currently worth about US$1.0b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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What Might The Insider Transactions At Monolithic Power Systems Tell Us?

Insiders sold Monolithic Power Systems shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Monolithic Power Systems is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Monolithic Power Systems. Every company has risks, and we've spotted 3 warning signs for Monolithic Power Systems (of which 1 is concerning!) you should know about.

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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.

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