Trade Alert: Independent Director Of Marsh & McLennan Companies Lloyd Yates Has Sold Stock
Some Marsh & McLennan Companies, Inc. (NYSE:MRSH) shareholders may be a little concerned to see that the Independent Director, Lloyd Yates, recently sold a substantial US$2.1m worth of stock at a price of US$176 per share. That sale reduced their total holding by 50% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Marsh & McLennan Companies
In fact, the recent sale by Lloyd Yates was the biggest sale of Marsh & McLennan Companies shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$181. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. This single sale was just 50% of Lloyd Yates's stake.
All up, insiders sold more shares in Marsh & McLennan Companies than they bought, over the last year. 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 Marsh & McLennan Companies
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. Marsh & McLennan Companies insiders own about US$86m worth of shares. That equates to 0.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Marsh & McLennan Companies Tell Us?
An insider hasn't bought Marsh & McLennan Companies stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Marsh & McLennan Companies. In terms of investment risks, we've identified 2 warning signs with Marsh & McLennan Companies and understanding them should be part of your investment process.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.