Don't Ignore The Fact That This Insider Just Sold Some Shares In The Marcus Corporation (NYSE:MCS)

Anyone interested in The Marcus Corporation (NYSE:MCS) should probably be aware that the Executive Vice President, Rolando Rodriguez, recently divested US$301k worth of shares in the company, at an average price of US$23.17 each. That sale was 15% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Marcus

The Last 12 Months Of Insider Transactions At Marcus

In fact, the recent sale by Rolando Rodriguez was the biggest sale of Marcus shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$22.45. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Marcus 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!

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

Does Marcus Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Marcus insiders own about US$189m worth of shares (which is 27% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Marcus Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Marcus. Our analysis shows 3 warning signs for Marcus (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.

But note: Marcus 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. 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.
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