Some MNF Group Limited (ASX:MNF) shareholders may be a little concerned to see that the Non Executive Director, Andy Fung, recently sold a whopping AU$2.5m worth of stock at a price of AU$5.09 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 3.5%.
MNF Group Insider Transactions Over The Last Year
Notably, that recent sale by Andy Fung is the biggest insider sale of MNF 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 AU$5.20. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 3.5%of Andy Fung's holding.
Andy Fung ditched 587383 shares over the year. The average price per share was AU$5.08. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that MNF Group insiders own 38% of the company, worth about AU$148m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The MNF Group Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at MNF Group, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.