We wouldn't blame MicroStrategy Incorporated (NASDAQ:MSTR) shareholders if they were a little worried about the fact that Andrew Kang, the Senior EVP & CFO recently netted about US$1.5m selling shares at an average price of US$257. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At MicroStrategy

Notably, that recent sale by Andrew Kang is the biggest insider sale of MicroStrategy shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$328). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 32% of Andrew Kang's holding.

Insiders in MicroStrategy didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like MicroStrategy better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

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. MicroStrategy insiders own about US$6.6b worth of shares (which is 9.9% 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.

So What Does This Data Suggest About MicroStrategy Insiders?

An insider hasn't bought MicroStrategy 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. 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for MicroStrategy you should be aware of.

But note: MicroStrategy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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