Mesa Air Group, Inc. (NASDAQ:MESA) insiders who sold US$7.8m worth of stock earlier this year are probably glad they did so as market cap slides to US$184m

By
Simply Wall St
Published
January 21, 2022
NasdaqGS:MESA
Source: Shutterstock

Over the past year, insiders sold US$7.8m worth of Mesa Air Group, Inc. (NASDAQ:MESA) stock at an average price of US$13.25 per share allowing them to get the most out of their money. After the stock price dropped 12% last week, the company's market value declined by US$25m, but insiders were able to mitigate their losses.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Mesa Air Group

Mesa Air Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Michael Lotz, sold US$1.8m worth of shares at a price of US$11.99 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. The silver lining is that this sell-down took place above the latest price (US$5.12). So it is hard to draw any strong conclusion from it.

In the last year Mesa Air Group insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:MESA Insider Trading Volume January 21st 2022

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

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Mesa Air Group insiders own 11% of the company, worth about US$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Mesa Air Group Tell Us?

It doesn't really mean much that no insider has traded Mesa Air Group shares in the last quarter. Still, the insider transactions at Mesa Air Group in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of 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. For example - Mesa Air Group has 4 warning signs we think you should be aware of.

Of course Mesa Air Group 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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