Manulife Financial Insiders Sold CA$7.2m Of Shares Suggesting Hesitancy

In the last year, many Manulife Financial Corporation (TSE:MFC) insiders sold a substantial stake in the company which may have sparked shareholders' attention. 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 insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Manulife Financial

The Last 12 Months Of Insider Transactions At Manulife Financial

In the last twelve months, the biggest single sale by an insider was when the President, Roy Gori, sold CA$2.0m worth of shares at a price of CA$46.07 per share. That means that an insider was selling shares at around the current price of CA$44.15. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Manulife Financial insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Manulife Financial Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Manulife Financial shares. Specifically, insiders ditched CA$2.8m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Manulife Financial insiders own about CA$74m worth of shares. That equates to 0.1% of the company. 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?

Insiders haven't bought Manulife Financial 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. But it is good to see that Manulife Financial is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Manulife Financial. In terms of investment risks, we've identified 1 warning sign with Manulife Financial and understanding it should be part of your investment process.

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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.