Anyone interested in Methode Electronics, Inc. (NYSE:MEI) should probably be aware that the Chief Operating Officer, Joseph Khoury, recently divested US$462k worth of shares in the company, at an average price of US$38.50 each. However, the silver lining is that the sale only reduced their total holding by 4.8%, so we're hesitant to read anything much into it, on its own.
Before we look at these insider transactions though, you might like to know that our analysis indicates that MEI is potentially undervalued!
The Last 12 Months Of Insider Transactions At Methode Electronics
Notably, that recent sale by Chief Operating Officer Joseph Khoury was not the only time they sold Methode Electronics shares this year. They previously made an even bigger sale of -US$909k worth of shares at a price of US$45.45 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$36.75). So it is hard to draw any strong conclusion from it.
Insiders in Methode Electronics didn't buy any shares in the last year. 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: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.8% of Methode Electronics shares, worth about US$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Methode Electronics Insider Transactions Indicate?
An insider hasn't bought Methode Electronics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Methode Electronics that deserve your attention before buying any shares.
Of course Methode Electronics 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, 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.
Methode Electronics, Inc. designs, engineers, and produces mechatronic products worldwide.
The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.
|Analysis Area||Score (0-6)|
Read more about these checks in the individual report sections or in our analysis model.
Excellent balance sheet average dividend payer.