MSC Industrial Direct Insiders Sold US$4.6m Of Shares Suggesting Hesitancy

Many MSC Industrial Direct Co., Inc. (NYSE:MSM) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

MSC Industrial Direct Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Erik Gershwind, for US$4.5m worth of shares, at about US$90.36 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$80.10. So it may not shed much light on insider confidence at current levels.

MSC Industrial Direct insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for MSC Industrial Direct

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. MSC Industrial Direct insiders own 22% of the company, currently worth about US$966m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At MSC Industrial Direct Tell Us?

It doesn't really mean much that no insider has traded MSC Industrial Direct shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the MSC Industrial Direct insiders selling. Of course, the future is what matters most. So if you are interested in MSC Industrial Direct, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.