Trade Alert: Independent Director Of MercadoLibre Henrique Dubugras Has Sold Stock

We wouldn't blame MercadoLibre, Inc. (NASDAQ:MELI) shareholders if they were a little worried about the fact that Henrique Dubugras, the Independent Director recently netted about US$1.7m selling shares at an average price of US$2,028. That diminished their holding by a very significant 69%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At MercadoLibre

In fact, the recent sale by Henrique Dubugras was the biggest sale of MercadoLibre shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$1,934. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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

See our latest analysis for MercadoLibre

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Insider Ownership Of MercadoLibre

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 MercadoLibre insiders own 0.1% of the company, worth about US$98m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About MercadoLibre Insiders?

Insiders sold MercadoLibre shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, MercadoLibre makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for MercadoLibre that deserve your attention before buying any shares.

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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.