This Insider Has Just Sold Shares In MeridianLink

Some MeridianLink, Inc. (NYSE:MLNK) shareholders may be a little concerned to see that the Chief Strategy Officer, Timothy Nguyen, recently sold a substantial US$2.7m worth of stock at a price of US$23.44 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.0%.

Check out 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. They previously made an even bigger sale of -US$30m worth of shares at a price of US$18.29 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$22.02. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 12% of Timothy Nguyen's holding.

Timothy Nguyen sold a total of 1.81m shares over the year at an average price of US$18.74. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that MeridianLink insiders own 19% of the company, worth about US$321m. 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 MeridianLink Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MeridianLink. Every company has risks, and we've spotted 1 warning sign for MeridianLink you should know about.

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.