Stock Analysis

Have Matthews International Corporation (NASDAQ:MATW) Insiders Been Selling Their Stock?

  •  Updated
NasdaqGS:MATW
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We'd be surprised if Matthews International Corporation (NASDAQ:MATW) shareholders haven't noticed that the Director, David Schawk, recently sold US$205k worth of stock at US$41.02 per share. On the bright side, that sale was only 2.5% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At Matthews International

Notably, that recent sale by David Schawk is the biggest insider sale of Matthews International shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$42.14). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 2.5% of David Schawk's holding.

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

insider-trading-volume
NasdaqGS:MATW Insider Trading Volume March 13th 2021

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Insider Ownership of Matthews International

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.4% of Matthews International shares, worth about US$45m. 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 Matthews International Insiders?

An insider hasn't bought Matthews International stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Matthews International. When we did our research, we found 4 warning signs for Matthews International (1 is potentially serious!) that we believe deserve your full attention.

But note: Matthews International 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, but not derivative transactions.

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What are the risks and opportunities for Matthews International?

Matthews International Corporation provides brand solutions, memorialization products, and industrial technologies worldwide.

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Rewards

  • Earnings are forecast to grow 103.88% per year

Risks

  • Interest payments are not well covered by earnings

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