Independent Director Of Murphy USA Sold 56% Of Their Shares

Some Murphy USA Inc. (NYSE:MUSA) shareholders may be a little concerned to see that the Independent Director, David Goebel, recently sold a substantial US$511k worth of stock at a price of US$511 per share. That diminished their holding by a very significant 56%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At Murphy USA

The Independent Non-Executive Chairman, Robert Murphy, made the biggest insider sale in the last 12 months. That single transaction was for US$25m worth of shares at a price of US$597 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$515). So it is hard to draw any strong conclusion from it.

In the last year Murphy USA insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Murphy USA

I will like Murphy USA 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 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 9.7% of the company, worth about US$886m. 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 Murphy USA Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Murphy USA makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. For example, Murphy USA has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

Of course Murphy USA may not be the best stock to buy. So you may wish to see this free collection of high quality 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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