Despite Hitting US$0.66, Mobix Labs Insiders Still Sold Too Soon

Even though Mobix Labs, Inc. (NASDAQ:MOBX) has fallen by 18% over the past week , insiders who sold US$471k worth of stock over the past year have had less luck. Given that the average selling price of US$0.96 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Mobix Labs Insider Transactions Over The Last Year

The Executive Chairman, James Peterson, made the biggest insider sale in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$0.90 each. While insider selling is a negative, to us, it is more negative if the shares are sold 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$0.66. So it is hard to draw any strong conclusion from it.

Mobix Labs insiders didn't buy any shares 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Mobix Labs

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

Insiders At Mobix Labs Have Sold Stock Recently

The last three months saw some Mobix Labs insider selling. Independent Director William Carpou only netted US$19k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Does Mobix Labs Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 36% of Mobix Labs shares, worth about US$15m. 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 Mobix Labs Insiders?

While there has not been any insider buying in the last three months, there has been selling. However, the sales are not big enough to concern us at all. Recent sales exacerbate our caution arising from analysis of Mobix Labs insider transactions. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Mobix Labs is showing 4 warning signs in our investment analysis, and 2 of those are potentially serious...

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.

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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.