Shareholders May Not Overlook Mesa Laboratories Insiders Selling US$634k In Stock

Last week, Mesa Laboratories, Inc.'s (NASDAQ:MLAB) stock jumped 19%, but insiders who sold US$634k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$111, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Mesa Laboratories

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Gary Owens, sold US$572k worth of shares at a price of US$114 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$73.14. So it is hard to draw any strong conclusion from it.

Insiders in Mesa Laboratories didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Mesa Laboratories

I will like Mesa Laboratories 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.

Does Mesa Laboratories Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.0% of Mesa Laboratories shares, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Mesa Laboratories Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Mesa Laboratories insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mesa Laboratories. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Mesa Laboratories.

But note: Mesa Laboratories 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 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.