Some MoneyLion Inc. (NYSE:ML) shareholders may be a little concerned to see that the Co-Founder, Diwakar Choubey, recently sold a substantial US$2.0m worth of stock at a price of US$67.54 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 4.6%.
MoneyLion Insider Transactions Over The Last Year
Notably, that recent sale by Diwakar Choubey is the biggest insider sale of MoneyLion shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$63.09). So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$51k for 3.18k shares. But insiders sold 93.99k shares worth US$4.4m. Over the last year we saw more insider selling of MoneyLion 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!
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Does MoneyLion 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. 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's great to see that MoneyLion insiders own 21% of the company, worth about US$161m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At MoneyLion Tell Us?
Insiders sold MoneyLion shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that MoneyLion has 3 warning signs and it would be unwise to ignore these.
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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.