Don't Ignore The Insider Selling In Mission Produce
We wouldn't blame Mission Produce, Inc. (NASDAQ:AVO) shareholders if they were a little worried about the fact that Stephen Barnard, the Founder & Executive Chairman of the Board recently netted about US$1.4m selling shares at an average price of US$13.01. However, that sale only accounted for 3.0% of their holding, so arguably it doesn't say much about their conviction.
Mission Produce Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Jay Pack bought US$2.1m worth of shares at a price of US$11.34 per share. We do like to see buying, but this purchase was made at well below the current price of US$13.14. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$3.1m for 276.00k shares. But insiders sold 255.06k shares worth US$3.3m. Over the last year we saw more insider selling of Mission Produce shares, than buying. 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 Mission Produce
I will like Mission Produce 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
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mission Produce insiders own about US$276m worth of shares (which is 24% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Mission Produce Insider Transactions Indicate?
The stark truth for Mission Produce is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mission Produce. To that end, you should learn about the 5 warning signs we've spotted with Mission Produce (including 1 which is potentially serious).
Of course Mission Produce 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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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.