Don't Ignore The Insider Selling In StoneX Group

Anyone interested in StoneX Group Inc. (NASDAQ:SNEX) should probably be aware that the CEO of Europe, Philip Smith, recently divested US$304k worth of shares in the company, at an average price of US$75.89 each. However, the silver lining is that the sale only reduced their total holding by 1.8%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for StoneX Group

The Last 12 Months Of Insider Transactions At StoneX Group

In the last twelve months, the biggest single sale by an insider was when the insider, Xuong Nguyen, sold US$1.5m worth of shares at a price of US$75.04 per share. That means that an insider was selling shares at slightly below the current price (US$76.72). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 25% of Xuong Nguyen's stake.

In the last year StoneX Group insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. StoneX Group insiders own 14% of the company, currently worth about US$341m 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 Does This Data Suggest About StoneX Group Insiders?

Insiders sold StoneX Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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 StoneX Group. Case in point: We've spotted 2 warning signs for StoneX Group you should be aware of.

But note: StoneX Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.