We’d be surprised if Malibu Boats, Inc. (NASDAQ:MBUU) shareholders haven’t noticed that the Chief Operating Officer, Ritchie Anderson, recently sold US$421k worth of stock at US$47.57 per share. The eyebrow raising move amounted to a reduction of 28% in their holding.
The Last 12 Months Of Insider Transactions At Malibu Boats
Notably, that recent sale by Ritchie Anderson is the biggest insider sale of Malibu Boats shares that we’ve seen in the last year. That means that even when the share price was below the current price of US$51.17, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 28%of Ritchie Anderson’s holding.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Malibu Boats
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Malibu Boats insiders own 1.7% of the company, worth about US$17m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Malibu Boats Insider Transactions Indicate?
An insider sold Malibu Boats shares recently, but they didn’t buy any. And even if we look to the last year, we didn’t see any purchases. But it is good to see that Malibu Boats is growing earnings. While insiders do own shares, they don’t own a heap, and they have been selling. We’d think twice before buying! 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.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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.
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