Insiders Sold US$639k Of WM Technology Stock Possibly Sending Warning Sign \

Despite a 19% gain in WM Technology, Inc.'s (NASDAQ:MAPS) stock price this week, shareholders shouldn't let up. Even though stock prices were relatively low, insiders elected to sell US$639k worth of stock in the last year, which could indicate some expected downturn.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for WM Technology

The Last 12 Months Of Insider Transactions At WM Technology

Over the last year, we can see that the biggest insider sale was by the insider, Christopher Beals, for US$121k worth of shares, at about US$2.65 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$1.01. So it may not shed much light on insider confidence at current levels.

Insiders in WM Technology 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!

I will like WM Technology better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

WM Technology Insiders Are Selling The Stock

The last three months saw some WM Technology insider selling. Insiders only netted US$34k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.7% of WM Technology shares, worth about US$7.9m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About WM Technology Insiders?

While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. We're a little cautious about the insider selling at WM Technology. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for WM Technology you should be aware of.

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, but not derivative transactions.

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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.