This Insider Has Just Sold Shares In Mistras Group

We wouldn't blame Mistras Group, Inc. (NYSE:MG) shareholders if they were a little worried about the fact that Michael Lange, the Senior Group Executive VP of Business Development & Strategic Planning recently netted about US$676k selling shares at an average price of US$10.82. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Mistras Group

Mistras Group Insider Transactions Over The Last Year

In fact, the recent sale by Michael Lange was the biggest sale of Mistras Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$11.28). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 20% of Michael Lange's holding.

Over the last year, we can see that insiders have bought 23.90k shares worth US$148k. On the other hand they divested 98.53k shares, for US$943k. All up, insiders sold more shares in Mistras Group than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Mistras Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Mistras Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Mistras Group insiders own 20% of the company, worth about US$70m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Mistras Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. 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 Mistras Group. At Simply Wall St, we found 2 warning signs for Mistras Group that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.