Don't Ignore The Insider Selling In StoneX Group

Some StoneX Group Inc. (NASDAQ:SNEX) shareholders may be a little concerned to see that the Chief Operating Officer, Xuong Nguyen, recently sold a substantial US$1.5m worth of stock at a price of US$75.04 per share. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

Check out our latest analysis for StoneX Group

StoneX Group Insider Transactions Over The Last Year

Notably, that recent sale by Xuong Nguyen is the biggest insider sale of StoneX Group shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$70.99. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in StoneX Group didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of StoneX Group

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. StoneX Group insiders own 14% of the company, currently worth about US$316m 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.

What Might The Insider Transactions At StoneX Group Tell Us?

Insiders haven't bought StoneX Group stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since StoneX Group is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of StoneX Group.

Of course StoneX 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.

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