Have MeridianLink Insiders Been Selling Stock?

We'd be surprised if MeridianLink, Inc. (NYSE:MLNK) shareholders haven't noticed that the Chief Strategy Officer, Timothy Nguyen, recently sold US$237k worth of stock at US$23.75 per share. However, the silver lining is that the sale only reduced their total holding by 0.08%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for MeridianLink

The Last 12 Months Of Insider Transactions At MeridianLink

Notably, that recent sale by Chief Strategy Officer Timothy Nguyen was not the only time they sold MeridianLink shares this year. Earlier in the year, they fetched US$18.29 per share in a -US$30m sale. That means that an insider was selling shares at slightly below the current price (US$22.62). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 12% of Timothy Nguyen's holding.

Timothy Nguyen ditched 1.67m shares over the year. The average price per share was US$18.32. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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: Most of them are flying under the radar).

Insider Ownership Of MeridianLink

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. MeridianLink insiders own 19% of the company, currently worth about US$331m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About MeridianLink Insiders?

An insider hasn't bought MeridianLink 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. In terms of investment risks, we've identified 2 warning signs with MeridianLink and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.