Yahoo Finance Meta Platforms, Inc.'s (NASDAQ:META)) market cap declines to US$263b but insiders who sold US$7.3m stock were able to hedge their losses
Insiders seem to have made the most of their holdings by selling US$7.3m worth of Meta Platforms, Inc. (NASDAQ:META) stock at an average sell price of US$196 during the past year. The company’s market cap plunged by US$86b after price dropped by 24% last week but insiders were able to limit their loss to an extent.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Meta Platforms
Meta Platforms Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chief Technology Officer, Andrew Bosworth, for US$2.3m worth of shares, at about US$199 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$99.20. So it may not tell us anything about how insiders feel about the current share price.
Meta Platforms insiders didn't buy any shares 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders At Meta Platforms Have Sold Stock Recently
The last quarter saw substantial insider selling of Meta Platforms shares. Specifically, insiders ditched US$3.2m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Meta Platforms
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Meta Platforms insiders own about US$43b worth of shares (which is 16% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Meta Platforms Insiders?
Insiders haven't bought Meta Platforms stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Meta Platforms you should be aware of.
But note: Meta Platforms may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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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.
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