Trade Alert: Executive Chairman Of Morgan Stanley James Gorman Has Sold Stock

We wouldn't blame Morgan Stanley (NYSE:MS) shareholders if they were a little worried about the fact that James Gorman, the Executive Chairman recently netted about US$21m selling shares at an average price of US$105. That's a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.

See our latest analysis for Morgan Stanley

The Last 12 Months Of Insider Transactions At Morgan Stanley

In fact, the recent sale by James Gorman was the biggest sale of Morgan Stanley shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$104. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Morgan Stanley 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Morgan Stanley

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Morgan Stanley insiders own about US$366m worth of shares (which is 0.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Morgan Stanley Insider Transactions Indicate?

Insiders haven't bought Morgan Stanley stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Morgan Stanley makes money, and is growing profits. 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 Morgan Stanley. Case in point: We've spotted 2 warning signs for Morgan Stanley you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com