Over the past year, insiders sold US$1.9m worth of Membership Collective Group Inc. (NYSE:MCG) stock at an average price of US$7.10 per share allowing them to get the most out of their money. The company's market valuation decreased by US$96m after the stock price dropped 8.3% over the past week, but insiders were spared from painful losses.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Membership Collective Group
In the last twelve months, the biggest single sale by an insider was when the President & Director, Andrew Carnie, sold US$604k worth of shares at a price of US$7.04 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$5.33. So it is hard to draw any strong conclusion from it.
Insiders in Membership Collective Group didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Membership Collective Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders At Membership Collective Group Have Sold Stock Recently
The last quarter saw substantial insider selling of Membership Collective Group shares. In total, insiders dumped US$1.7m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Membership Collective Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Membership Collective Group insiders own 34% of the company, currently worth about US$357m based on the recent share price. 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 Membership Collective Group Insiders?
Insiders sold Membership Collective Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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 Membership Collective Group. Every company has risks, and we've spotted 1 warning sign for Membership Collective Group you should know about.
But note: Membership Collective 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, but not derivative transactions.
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