This Insider Has Just Sold Shares In Mader Group

Some Mader Group Limited (ASX:MAD) shareholders may be a little concerned to see that the Non-Executive Director, Craig Burton, recently sold a substantial AU$6.6m worth of stock at a price of AU$6.69 per share. However, that sale only accounted for 2.5% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Mader Group

The Last 12 Months Of Insider Transactions At Mader Group

The Founder & Executive Chairman, Luke Mader, made the biggest insider sale in the last 12 months. That single transaction was for AU$61m worth of shares at a price of AU$6.15 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$5.56. So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Mader Group shares, than buying. 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!

I will like Mader Group 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 Mader Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Mader Group insiders own 72% of the company, worth about AU$803m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Mader Group Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Mader Group stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Mader Group is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. For example - Mader Group has 1 warning sign we think you should be aware of.

But note: Mader Group 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 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.