This Insider Has Just Sold Shares In MediaAlpha

We'd be surprised if MediaAlpha, Inc. (NYSE:MAX) shareholders haven't noticed that the Co-Founder, Eugene Nonko, recently sold US$197k worth of stock at US$12.18 per share. On the bright side, that sale was only 0.7% of their holding, so we doubt it's very meaningful, on its own.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

MediaAlpha Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Revenue Officer & Head of PC, Keith Cramer, sold US$298k worth of shares at a price of US$11.31 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$12.76. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 73% of Keith Cramer's stake.

In total, MediaAlpha insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for MediaAlpha

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does MediaAlpha Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. MediaAlpha insiders own 22% of the company, currently worth about US$184m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The MediaAlpha Insider Transactions Indicate?

An insider sold MediaAlpha shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, MediaAlpha has 2 warning signs (and 1 which is a bit concerning) we think 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.

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.