Many MSC Industrial Direct Co., Inc. (NYSE:MSM) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
MSC Industrial Direct Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Non-Executive Chairman, Mitchell Jacobson, for US$15m worth of shares, at about US$97.66 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$81.07). So it is hard to draw any strong conclusion from it.
Insiders in MSC Industrial Direct didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of MSC Industrial Direct
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. MSC Industrial Direct insiders own about US$988m worth of shares (which is 22% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At MSC Industrial Direct Tell Us?
It doesn't really mean much that no insider has traded MSC Industrial Direct shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of MSC Industrial Direct insider transactions don't fill us with confidence. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
