We note that the Mistras Group, Inc. (NYSE:MG) Executive VP & President of Services, John Smith, recently sold US$63k worth of stock for US$6.29 per share. It wasn't a huge sale, but it did reduce their holding by 25%. This does not instill confidence.
See our latest analysis for Mistras Group
Mistras Group Insider Transactions Over The Last Year
Notably, that recent sale by John Smith is the biggest insider sale of Mistras Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$6.67. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 25%of John Smith's holding.
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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Mistras Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Mistras Group insiders own 13% of the company, worth about US$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Mistras Group Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the difference is small, and thus, not concerning. Recent insider selling makes us a little nervous, in light of the broader picture of Mistras Group insider transactions. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mistras Group. Our analysis shows 2 warning signs for Mistras Group (1 is significant!) and we strongly recommend you look at them before investing.
But note: Mistras Group 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.