Don't Ignore The Fact That This Insider Just Sold Some Shares In Microsaic Systems plc (LON:MSYS)

We'd be surprised if Microsaic Systems plc (LON:MSYS) shareholders haven't noticed that an insider, Colin Nicholl, recently sold UK£195k worth of stock at UK£0.39 per share. On the bright side, that sale was only 7.9% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Microsaic Systems

Microsaic Systems Insider Transactions Over The Last Year

Notably, that recent sale by Colin Nicholl is the biggest insider sale of Microsaic Systems shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (UK£0.0045). So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in Microsaic Systems 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!

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).

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. Insiders own 8.5% of Microsaic Systems shares, worth about UK£175k, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Microsaic Systems Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Microsaic Systems stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (3 don't sit too well with us!) that you ought to be aware of before buying any shares in Microsaic Systems.

Of course Microsaic Systems 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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