Mr. Cooper Group Insiders Sold US$2.3m Of Shares Suggesting Hesitancy

Over the past year, many Mr. Cooper Group Inc. (NASDAQ:COOP) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Mr. Cooper Group

Mr. Cooper Group Insider Transactions Over The Last Year

The Executive VP & CEO of Xome, Michael Rawls, made the biggest insider sale in the last 12 months. That single transaction was for US$2.2m worth of shares at a price of US$82.18 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$91.38. 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. It is worth noting that this sale was only 32% of Michael Rawls's holding.

All up, insiders sold more shares in Mr. Cooper Group than they bought, over the last year. 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!

I will like Mr. Cooper 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 Mr. Cooper Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Mr. Cooper Group insiders own 2.9% of the company, currently worth about US$171m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Mr. Cooper Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Mr. Cooper Group insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mr. Cooper Group. You'd be interested to know, that we found 1 warning sign for Mr. Cooper Group and we suggest you have a look.

Of course Mr. Cooper Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.