Founder Kenneth Moelis Just Sold A Bunch Of Shares In Moelis & Company (NYSE:MC)

We wouldn't blame Moelis & Company (NYSE:MC) shareholders if they were a little worried about the fact that Kenneth Moelis, the Founder recently netted about US$9.0m selling shares at an average price of US$46.36. That sale reduced their total holding by 44% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Moelis

The Last 12 Months Of Insider Transactions At Moelis

In fact, the recent sale by Kenneth Moelis was the biggest sale of Moelis shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$42.14. So it may not shed much light on insider confidence at current levels.

Insiders in Moelis 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Moelis

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. Insiders own 0.9% of Moelis shares, worth about US$28m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Moelis Insider Transactions Indicate?

Insiders haven't bought Moelis stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Moelis (of which 1 can't be ignored!) you should know about.

But note: Moelis 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, but not derivative transactions.

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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.