Have Marcus & Millichap, Inc. (NYSE:MMI) Insiders Been Selling Their Stock?

Some Marcus & Millichap, Inc. (NYSE:MMI) shareholders may be a little concerned to see that the Founder & Chairman, George Marcus, recently sold a substantial US$3.0m worth of stock at a price of US$34.17 per share. However, that sale only accounted for 0.6% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Marcus & Millichap

Marcus & Millichap Insider Transactions Over The Last Year

In fact, the recent sale by George Marcus was the biggest sale of Marcus & Millichap shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$34.62, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 0.6% of George Marcus's holding.

In the last year Marcus & Millichap insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Marcus & Millichap

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. Marcus & Millichap insiders own 38% of the company, currently worth about US$524m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Marcus & Millichap Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. 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 & Millichap. At Simply Wall St, we found 2 warning signs for Marcus & Millichap that deserve your attention before buying any shares.

Of course Marcus & Millichap may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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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