Don't Ignore The Insider Selling In MA Financial Group

We wouldn't blame MA Financial Group Limited (ASX:MAF) shareholders if they were a little worried about the fact that Andrew Pridham, the Co-Founder & Group Executive Vice Chairman recently netted about AU$10m selling shares at an average price of AU$9.64. However, that sale only accounted for 3.6% of their holding, so arguably it doesn't say much about their conviction.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

MA Financial Group Insider Transactions Over The Last Year

In fact, the recent sale by Andrew Pridham was the biggest sale of MA Financial Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of AU$9.33. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 13.80k shares for AU$99k. But insiders sold 2.23m shares worth AU$18m. In total, MA Financial Group insiders sold more than they bought over the last year. 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!

View our latest analysis for MA Financial Group

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. MA Financial Group insiders own about AU$396m worth of shares (which is 24% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At MA Financial Group Tell Us?

An insider sold MA Financial Group shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that MA Financial Group is growing earnings. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in MA Financial Group.

Of course MA Financial Group 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.