Don't Ignore The Insider Selling In MGIC Investment

We wouldn't blame MGIC Investment Corporation (NYSE:MTG) shareholders if they were a little worried about the fact that Salvatore Miosi, the President & COO recently netted about US$855k selling shares at an average price of US$28.50. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.8%.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

MGIC Investment Insider Transactions Over The Last Year

In fact, the recent sale by Salvatore Miosi was the biggest sale of MGIC Investment shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$29.35). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 7.8% of Salvatore Miosi's holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for MGIC Investment

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 MGIC Investment

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. It appears that MGIC Investment insiders own 1.1% of the company, worth about US$63m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At MGIC Investment Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since MGIC Investment is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for MGIC Investment you should be aware of, and 1 of them is potentially serious.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.