Non-Executive Director Of Mayfield Group Holdings Sold 50% Of Their Shares

Some Mayfield Group Holdings Limited (ASX:MYG) shareholders may be a little concerned to see that the Non-Executive Director, Alan Steele, recently sold a substantial AU$12m worth of stock at a price of AU$2.32 per share. That's a big disposal, and it decreased their holding size by 50%, which is notable but not too bad.

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Mayfield Group Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Alan Steele was the biggest sale of Mayfield Group Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$2.70. 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 50% of Alan Steele's stake.

Alan Steele divested 7.49m shares over the last 12 months at an average price of AU$2.02. You can see the insider transactions (by companies and 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!

Check out our latest analysis for Mayfield Group Holdings

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.

Insider Ownership Of Mayfield Group Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Mayfield Group Holdings insiders own 52% of the company, worth about AU$162m. 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 hasn't bought Mayfield Group Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Mayfield Group Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mayfield Group Holdings. At Simply Wall St, we found 2 warning signs for Mayfield Group Holdings that deserve your attention before buying any shares.

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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 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.