Have Insiders Sold Mercer International Inc. (NASDAQ:MERC) Shares Recently?

By
Simply Wall St
Published
May 18, 2021
NasdaqGS:MERC
Source: Shutterstock

Anyone interested in Mercer International Inc. (NASDAQ:MERC) should probably be aware that a company insider, Eric Heine, recently divested US$108k worth of shares in the company, at an average price of US$15.46 each. On the bright side, that sale was only 9.4% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Mercer International

Mercer International Insider Transactions Over The Last Year

The insider, Wolfram Ridder, made the biggest insider sale in the last 12 months. That single transaction was for US$150k worth of shares at a price of US$15.02 each. That means that even when the share price was slightly below the current price of US$15.07, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 14% of Wolfram Ridder's holding.

In total, Mercer International insiders sold more than they bought over the last year. 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!

insider-trading-volume
NasdaqGS:MERC Insider Trading Volume May 19th 2021

I will like Mercer International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Mercer International

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 4.9% of Mercer International shares, worth about US$49m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Mercer International Insiders?

Unfortunately, there has been more insider selling of Mercer International stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mercer International. For instance, we've identified 3 warning signs for Mercer International (1 is a bit concerning) you should be aware of.

But note: Mercer International 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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