Yahoo Finance Marsh & McLennan Companies, Inc. (NYSE:MMC) insiders sold US$1.5m worth of stock, possibly signalling a downtrend
In the last year, many Marsh & McLennan Companies, Inc. (NYSE:MMC) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
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.
View our latest analysis for Marsh & McLennan Companies
The Last 12 Months Of Insider Transactions At Marsh & McLennan Companies
Notably, that recent sale by Óscar Fanjul Martín is the biggest insider sale of Marsh & McLennan Companies shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$172, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 6.7%of Óscar Fanjul Martín's holding.
In the last year Marsh & McLennan Companies insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insiders At Marsh & McLennan Companies Have Sold Stock Recently
The last quarter saw substantial insider selling of Marsh & McLennan Companies shares. In total, Independent Director Óscar Fanjul Martín sold US$1.0m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Marsh & McLennan Companies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Marsh & McLennan Companies insiders own 0.2% of the company, currently worth about US$206m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Marsh & McLennan Companies Insiders?
An insider hasn't bought Marsh & McLennan Companies stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Marsh & McLennan Companies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 - Marsh & McLennan Companies has 2 warning signs we think you should be aware of.
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, 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.
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