Have Mayfield Group Holdings Insiders Been Selling Stock?

We'd be surprised if Mayfield Group Holdings Limited (ASX:MYG) shareholders haven't noticed that the Non-Executive Director, Alan Steele, recently sold AU$560k worth of stock at AU$0.80 per share. However, the silver lining is that the sale only reduced their total holding by 5.3%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Mayfield Group Holdings

The Last 12 Months Of Insider Transactions At Mayfield Group Holdings

In fact, the recent sale by Non-Executive Director Alan Steele was not their only sale of Mayfield Group Holdings shares this year. They previously made an even bigger sale of -AU$828k worth of shares at a price of AU$0.46 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.79. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 12% of Alan Steele's stake.

Alan Steele divested 2.50m shares over the last 12 months at an average price of AU$0.56. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Mayfield Group Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Mayfield Group Holdings Boast High Insider Ownership?

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. Mayfield Group Holdings insiders own 69% of the company, currently worth about AU$50m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Mayfield Group Holdings Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Mayfield Group Holdings makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. While conducting our analysis, we found that Mayfield Group Holdings has 2 warning signs and it would be unwise to ignore these.

Of course Mayfield Group Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.