Mobix Labs Drops To US$0.67, Yet Insiders May Have Sold Too Early

Despite the fact that Mobix Labs, Inc.'s (NASDAQ:MOBX) value has dropped 15% in the last week insiders who sold US$453k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$0.96 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Mobix Labs Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, James Peterson, for US$250k worth of shares, at about US$0.90 per share. 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$0.67. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Mobix Labs 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Mobix Labs

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mobix Labs insiders own about US$15m worth of shares (which is 42% of the company). 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 Does This Data Suggest About Mobix Labs Insiders?

The fact that there have been no Mobix Labs insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Mobix Labs, we can't say the same about the selling of shares. 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 example, Mobix Labs has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

Of course Mobix Labs 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 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.