Maximus General Manager of Health Services U.S. Ilene Baylinson Sells 67% Of Holding

We wouldn't blame Maximus, Inc. (NYSE:MMS) shareholders if they were a little worried about the fact that Ilene Baylinson, the General Manager of Health Services U.S. recently netted about US$859k selling shares at an average price of US$85.57. Probably the most concerning element of the whole transaction is that the disposal amounted to 67% of their entire holding.

View our latest analysis for Maximus

Maximus Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Bruce Caswell, for US$1.6m worth of shares, at about US$74.68 per share. That means that even when the share price was below the current price of US$81.47, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 8.3% of Bruce Caswell's stake. Notably Bruce Caswell was also the biggest buyer, having purchased US$248k worth of shares.

In total, Maximus insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Maximus

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. Maximus insiders own about US$55m worth of shares. That equates to 1.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Maximus Tell Us?

Insiders sold stock recently, but they haven't been buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Maximus. At Simply Wall St, we found 2 warning signs for Maximus that deserve your attention before buying any shares.

But note: Maximus 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.