Trade Alert: The Independent Director Of MBIA Inc. (NYSE:MBI), Steven Gilbert, Has Sold Some Shares Recently

Some MBIA Inc. (NYSE:MBI) shareholders may be a little concerned to see that the Independent Director, Steven Gilbert, recently sold a substantial US$1.3m worth of stock at a price of US$15.58 per share. That diminished their holding by a very significant 64%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for MBIA

The Last 12 Months Of Insider Transactions At MBIA

Notably, that recent sale by Steven Gilbert is the biggest insider sale of MBIA shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$13.60). So it is hard to draw any strong conclusion from it.

In the last year MBIA insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does MBIA Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 13% of MBIA shares, worth about US$98m. 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 MBIA Insider Transactions Indicate?

An insider sold MBIA shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. 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. In terms of investment risks, we've identified 2 warning signs with MBIA and understanding these should be part of your investment process.

But note: MBIA 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.