Have Euronet Worldwide Insiders Been Selling Stock?

Some Euronet Worldwide, Inc. (NASDAQ:EEFT) shareholders may be a little concerned to see that the Chairman, Michael Brown, recently sold a substantial US$9.6m worth of stock at a price of US$101 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.6%.

View our latest analysis for Euronet Worldwide

The Last 12 Months Of Insider Transactions At Euronet Worldwide

In fact, the recent sale by Michael Brown was the biggest sale of Euronet Worldwide shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$106. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 4.6% of Michael Brown's stake.

Over the last year we saw more insider selling of Euronet Worldwide shares, than buying. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Euronet Worldwide insiders own 6.6% of the company, currently worth about US$301m 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 Does This Data Suggest About Euronet Worldwide Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Euronet Worldwide is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Euronet Worldwide. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Euronet Worldwide.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.