Stock Analysis

John Parker Is The Executive VP & COO of Eastern Division of Marcus & Millichap, Inc. (NYSE:MMI) And They Just Sold 46% Of Their Shares

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Anyone interested in Marcus & Millichap, Inc. (NYSE:MMI) should probably be aware that the Executive VP & COO of Eastern Division, John Parker, recently divested US$154k worth of shares in the company, at an average price of US$30.96 each. That sale was 46% of their holding, so it does make us raise an eyebrow.

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Marcus & Millichap Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive VP & COO of Western Division, Richard Matricaria, for US$280k worth of shares, at about US$41.79 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$30.79. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Marcus & Millichap didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:MMI Insider Trading Volume March 18th 2023

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Insider Ownership

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 about US$446m worth of shares (which is 37% 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 & Millichap Tell Us?

An insider hasn't bought Marcus & Millichap stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for Marcus & Millichap (1 is a bit concerning) you should be aware of.

But note: Marcus & Millichap 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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