Director Nishan Vartanian Sold A Bunch Of Shares In MSA Safety
We wouldn't blame MSA Safety Incorporated (NYSE:MSA) shareholders if they were a little worried about the fact that Nishan Vartanian, the Director recently netted about US$3.9m selling shares at an average price of US$194. That sale reduced their total holding by 28% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At MSA Safety
In fact, the recent sale by Nishan Vartanian was the biggest sale of MSA Safety shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$193. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year we saw more insider selling of MSA Safety shares, than buying. 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!
See our latest analysis for MSA Safety
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Does MSA Safety Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. MSA Safety insiders own about US$460m worth of shares (which is 6.2% 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 MSA Safety Insiders?
Unfortunately, there has been more insider selling of MSA Safety stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, MSA Safety makes money, and is growing profits. 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 MSA Safety. In terms of investment risks, we've identified 1 warning sign with MSA Safety and understanding this should be part of your investment process.
But note: MSA Safety 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 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.