Don’t Ignore The Fact That This Insider Just Sold Some Shares In Moelis & Company (NYSE:MC)

We wouldn’t blame Moelis & Company (NYSE:MC) shareholders if they were a little worried about the fact that Elizabeth Crain, the Founding Partner recently netted about US$649k selling shares at an average price of US$32.43. That’s a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.

View our latest analysis for Moelis

Moelis Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Navid Mahmoodzadegan, sold US$2.6m worth of shares at a price of US$35.03 per share. So we know that an insider sold shares at around the present share price of US$31.74. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).

In the last year Moelis insiders didn’t buy any company stock. 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!

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NYSE:MC Insider Trading Volume August 17th 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Moelis insiders own about US$33m worth of shares. That equates to 1.6% of the company. 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 Does This Data Suggest About Moelis Insiders?

Insiders haven’t bought Moelis stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 5 warning signs for Moelis (1 is concerning!) and we strongly recommend you look at them before investing.

But note: Moelis 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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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.
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