Some Murphy USA Inc. (NYSE:MUSA) shareholders may be a little concerned to see that the Independent Non-Executive Chairman, Robert Murphy, recently sold a substantial US$8.6m worth of stock at a price of US$515 per share. However, that sale only accounted for 2.9% of their holding, so arguably it doesn't say much about their conviction.

Murphy USA Insider Transactions Over The Last Year

Notably, that recent sale by Independent Non-Executive Chairman Robert Murphy was not the only time they sold Murphy USA shares this year. They previously made an even bigger sale of -US$11m worth of shares at a price of US$367 per share. That means that even when the share price was below the current price of US$511, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 4.9% of Robert Murphy's holding.

Murphy USA insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Murphy USA

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Murphy USA insiders own 9.1% of the company, worth about US$948m. 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 Do The Murphy USA Insider Transactions Indicate?

An insider sold Murphy USA shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Murphy USA. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Murphy USA.

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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.