This Insider Has Just Sold Shares In Mitchell Services
We wouldn't blame Mitchell Services Limited (ASX:MSV) shareholders if they were a little worried about the fact that Scott Tumbridge, a company insider, recently netted about AU$1.7m selling shares at an average price of AU$0.52. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Mitchell Services
Notably, that recent sale by Scott Tumbridge is the biggest insider sale of Mitchell Services shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of AU$0.51. 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.
Scott Tumbridge divested 5.07m shares over the last 12 months at an average price of AU$0.52. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Mitchell Services
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
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. Insiders own 20% of Mitchell Services shares, worth about AU$21m. 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 Mitchell Services Insider Transactions Indicate?
An insider hasn't bought Mitchell Services stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Mitchell Services makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Mitchell Services is showing 3 warning signs in our investment analysis, and 1 of those is concerning...
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 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.