Manulife Financial Insiders Sold CA$4.7m Of Shares Suggesting Hesitancy

Many Manulife Financial Corporation (TSE:MFC) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Manulife Financial Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Advisor, Roy Gori, for CA$2.0m worth of shares, at about CA$46.07 per share. So what is clear is that an insider saw fit to sell at around the current price of CA$43.75. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

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

See our latest analysis for Manulife Financial

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Manulife Financial Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Manulife Financial shares over the last three months. In that time, insiders dumped CA$1.3m worth of shares. Meanwhile insider Anthony Silva bought CA$203k worth , as we said above . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Insider Ownership Of Manulife Financial

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.06% of Manulife Financial shares, worth about CA$42m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Manulife Financial Insiders?

The stark truth for Manulife Financial is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Manulife Financial is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Manulife Financial.

But note: Manulife Financial 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.