Yahoo Finance Insiders probably made the right decision selling US$7.3m worth of shares earlier this year as Meta Platforms, Inc.'s (NASDAQ:META)) stock dips by 8.3%.
Insiders seem to have made the most of their holdings by selling US$7.3m worth of Meta Platforms, Inc. (NASDAQ:META) stock at an average sell price of US$196 during the past year. The company's market worth decreased by US$31b over the past week after the stock price dropped 8.3%, although insiders were able to minimize their losses
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Meta Platforms
The Last 12 Months Of Insider Transactions At Meta Platforms
In the last twelve months, the biggest single sale by an insider was when the Chief Technology Officer, Andrew Bosworth, sold US$2.3m worth of shares at a price of US$199 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$128. So it may not shed much light on insider confidence at current levels.
Meta Platforms 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!
I will like Meta Platforms better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Meta Platforms Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Meta Platforms shares. Specifically, insiders ditched US$3.2m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Meta Platforms Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Meta Platforms insiders own 16% of the company, worth about US$55b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Meta Platforms Insider Transactions Indicate?
Insiders sold Meta Platforms shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Meta Platforms. For example - Meta Platforms has 1 warning sign we think you should be aware of.
But note: Meta Platforms 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, 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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