Are Insiders Selling Shares of MicroStrategy Incorporated (NASDAQ: MSTR)?
We have lost count of the number of times insiders have racked up shares in a company that is improving significantly. On the flip side, we would be remiss not to mention that insider selling is known to precede tough times for a business. So before you buy or sell MicroStrategy Incorporated (NASDAQ: MSTR), you might want to know if any insiders have bought or sold.
What is insider selling?
It is quite normal to see company insiders, such as board members, trading company shares from time to time. However, most countries require the company to disclose these transactions to the market.
Insider trading is not the most important thing when it comes to investing for the long term. But logic dictates that you pay attention to whether insiders are buying or selling stocks. As Peter Lynch said, “Insiders can sell their shares for any number of reasons, but they buy them for one only: they think the price will go up.”
Check out our latest analysis for MicroStrategy
MicroStrategy Insider Transactions in the Past Year
Independent director Carl Rickertsen made the biggest insider sale in the past 12 months. This single transaction involved $ 2.4 million in shares at a price of $ 800 each. While we generally don’t like to see insider sales, it is more of a concern if the sales come at a lower price. It is heartwarming that this sale was made at a much higher price than the current share price of US $ 556. So it might not shed much light on insider confidence at current levels.
Over the past year, MicroStrategy insiders have not purchased any shares of the company. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, for how much and when, just click on the graph below!
If you are like me then you not want to miss it free list of growing companies that insiders buy.
MicroStrategy Insider Ownership
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. I think it’s a good sign if the insiders own a significant number of shares in the company. MicroStrategy insiders own about $ 1.1 billion in shares (or 20% of the company). Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
So what do MicroStrategy’s insider trading indicate?
There haven’t been any insider trading in the past three months, that doesn’t mean much. While we’re happy with MicroStrategy’s strong insider ownership, we can’t say the same for the sale of shares. In addition to knowing the current insider transactions, it is useful to identify the risks that MicroStrategy faces. Note that MicroStrategy displays 2 warning signs in our investment analysis, and 1 of them is a bit disturbing …
But beware : MicroStrategy May Not Be The Best Stock To Buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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