MSA Safety Incorporated's (NYSE:MSA)) market cap declines to US$5.6b but insiders who sold US$13m stock were able to hedge their losses

By
Simply Wall St
Published
December 04, 2021
NYSE:MSA
Source: Shutterstock

Insiders at MSA Safety Incorporated (NYSE:MSA) sold US$13m worth of stock at an average price of US$157 a share over the past year, making the most of their investment. After the stock price dropped 5.3% last week, the company's market value declined by US$313m, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for MSA Safety

MSA Safety Insider Transactions Over The Last Year

The Director, William Lambert, made the biggest insider sale in the last 12 months. That single transaction was for US$4.7m worth of shares at a price of US$153 each. That means that an insider was selling shares at around the current price of US$143. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

MSA Safety insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:MSA Insider Trading Volume December 5th 2021

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).

MSA Safety Insiders Are Selling The Stock

The last quarter saw substantial insider selling of MSA Safety shares. Specifically, insiders ditched US$1.9m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership of MSA Safety

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. MSA Safety insiders own 6.5% of the company, currently worth about US$365m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The MSA Safety Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MSA Safety. Every company has risks, and we've spotted 4 warning signs for MSA Safety you should know about.

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, but not derivative transactions.

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