Insiders Could Have Profited By Holding onto MOVE Logistics Group Shares Despite 16% Drop

Even though MOVE Logistics Group Limited (NZSE:MOV) has fallen by 16% over the past week , insiders who sold NZ$1.1m worth of stock over the past year have had less luck. Given that the average selling price of NZ$0.82 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for MOVE Logistics Group

The Last 12 Months Of Insider Transactions At MOVE Logistics Group

The insider, Nerida Ramsay, made the biggest insider sale in the last 12 months. That single transaction was for NZ$1.1m worth of shares at a price of NZ$0.82 each. 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 (NZ$0.64). So it may not tell us anything about how insiders feel about the current share price. Nerida Ramsay was the only individual insider to sell 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insiders At MOVE Logistics Group Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at MOVE Logistics Group. In total, insider Nerida Ramsay sold NZ$1.1m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 34% of MOVE Logistics Group shares, worth about NZ$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At MOVE Logistics Group Tell Us?

An insider sold MOVE Logistics Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, MOVE Logistics Group has 4 warning signs (and 1 which is potentially serious) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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. 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.