Don't Ignore The Insider Selling In Marqeta

Anyone interested in Marqeta, Inc. (NASDAQ:MQ) should probably be aware that the Founder & Non Executive Director, Jason Gardner, recently divested US$291k worth of shares in the company, at an average price of US$5.00 each. On the bright side, that sale was only 0.4% of their holding, so we doubt it's very meaningful, on its own.

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Marqeta Insider Transactions Over The Last Year

In fact, the recent sale by Founder & Non Executive Director Jason Gardner was not their only sale of Marqeta shares this year. Earlier in the year, they fetched US$6.63 per share in a -US$15m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$4.97. So it is hard to draw any strong conclusion from it.

In the last year Marqeta insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Marqeta

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Marqeta Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Marqeta insiders own about US$260m worth of shares (which is 12% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Marqeta Insider Transactions Indicate?

Insiders sold Marqeta shares recently, but they didn't buy any. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Marqeta.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.