- Oops!Something went wrong.Please try again later.
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Manning & Napier, Inc. (NYSE:MN), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
The Last 12 Months Of Insider Transactions At Manning & Napier
The Director of Investments Ebrahim Busheri made the biggest insider purchase in the last 12 months. That single transaction was for US$111k worth of shares at a price of US$3.89 each. We do like to see buying, but this purchase was made at well below the current price of US$8.17. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$242k for 62.83k shares. But they sold 5.30k shares for US$40k. Overall, Manning & Napier insiders were net buyers during the last year. 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!
Manning & Napier is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Manning & Napier Insiders Are Selling The Stock
Over the last three months, we've seen a bit of insider selling at Manning & Napier. Chief Technology Officer Christopher Briley divested only US$40k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Insider Ownership of Manning & Napier
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 Manning & Napier insiders own 16% of the company, worth about US$24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Manning & Napier Insider Transactions Indicate?
Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Manning & Napier and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Manning & Napier. For instance, we've identified 2 warning signs for Manning & Napier (1 shouldn't be ignored) you should be aware of.
But note: Manning & Napier 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.
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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.