Possible Signal As Maiden Holdings Insiders Sell US$641k In Stock

Despite the fact that Maiden Holdings, Ltd. (NASDAQ:MHLD) stock rose 16% last week, insiders who sold US$641k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$2.28, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Maiden Holdings

Maiden Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Director, Yehuda Neuberger, for US$634k worth of shares, at about US$2.29 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.74). So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 45.00k shares worth US$72k. On the other hand they divested 281.20k shares, for US$641k. All up, insiders sold more shares in Maiden Holdings than they bought, over 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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Have Maiden Holdings Insiders Traded Recently?

The last three months saw some Maiden Holdings insider selling. Senior VP William Jarman only netted US$6.8k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Does Maiden Holdings Boast High Insider Ownership?

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. Insiders own 27% of Maiden Holdings shares, worth about US$47m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Maiden Holdings Tell Us?

We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. Recent insider selling makes us a little nervous, in light of the broader picture of Maiden Holdings insider transactions. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Maiden Holdings. Every company has risks, and we've spotted 1 warning sign for Maiden Holdings you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.