Stock Analysis

This Insider Has Just Sold Shares In MNF Group Limited (ASX:MNF)

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ASX:SYM
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We wouldn't blame MNF Group Limited (ASX:MNF) shareholders if they were a little worried about the fact that Andy Fung, the Co- Founder & Non Executive Director recently netted about AU$11m selling shares at an average price of AU$5.08. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At MNF Group

Notably, that recent sale by Andy Fung is the biggest insider sale of MNF Group shares that we've seen in the last year. That means that an insider was selling shares at below the current price (AU$5.15). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 16% of Andy Fung's holding.

In total, MNF Group insiders sold more than they bought over the last year. 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!

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ASX:MNF Insider Trading Volume March 18th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does MNF 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. A high insider ownership often makes company leadership more mindful of shareholder interests. MNF Group insiders own about AU$144m worth of shares (which is 32% 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 MNF Group Tell Us?

An insider sold MNF Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, MNF Group 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 MNF Group. You'd be interested to know, that we found 1 warning sign for MNF Group and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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