Don't Ignore The Insider Selling In MarketAxess Holdings

We wouldn't blame MarketAxess Holdings Inc. (NASDAQ:MKTX) shareholders if they were a little worried about the fact that Richard McVey, the Founder & Executive Chairman recently netted about US$14m selling shares at an average price of US$270. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.6%.

Check out our latest analysis for MarketAxess Holdings

The Last 12 Months Of Insider Transactions At MarketAxess Holdings

Notably, that recent sale by Richard McVey is the biggest insider sale of MarketAxess Holdings shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$262. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year MarketAxess Holdings insiders didn't buy any company stock. 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!

I will like MarketAxess Holdings 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

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. MarketAxess Holdings insiders own 1.9% of the company, currently worth about US$183m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At MarketAxess Holdings Tell Us?

Insiders sold MarketAxess Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, MarketAxess Holdings makes money, and is growing profits. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that MarketAxess Holdings has 1 warning sign and it would be unwise to ignore it.

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.