Trade Alert: Independent Director Of Match Group Stephen Bailey Has Sold Stock

Explore Match Group's Fair Values from the Community and select yours

Anyone interested in Match Group, Inc. (NASDAQ:MTCH) should probably be aware that the Independent Director, Stephen Bailey, recently divested US$459k worth of shares in the company, at an average price of US$36.72 each. Equally important, that sale actually reduced their holding by a full 61% which hardly makes us feel bullish about the stock.

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The Last 12 Months Of Insider Transactions At Match Group

In the last twelve months, the biggest single sale by an insider was when the insider, Gary Swidler, sold US$8.0m worth of shares at a price of US$33.40 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$36.09. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was 99% of Gary Swidler's stake.

Over the last year, we can see that insiders have bought 133.45k shares worth US$4.1m. On the other hand they divested 255.51k shares, for US$8.4m. In total, Match Group insiders sold more 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. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Match Group

I will like Match Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Match Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.6% of Match Group shares, worth about US$54m. 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 Match Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. Every company has risks, and we've spotted 3 warning signs for Match Group you should know about.

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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.