Meta Platforms Insiders Sold US$12m Of Shares Suggesting Hesitancy

Meta Platforms -0.47% Pre

Meta Platforms

META

481.74

480.54

-0.47%

-0.25% Pre

Over the past year, many Meta Platforms, Inc. (NASDAQ:META) insiders sold a significant stake in the company which may have piqued investors' interest. 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View 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 Financial Officer, Susan J. Li, for US$3.3m worth of shares, at about US$306 per share. So what is clear is that an insider saw fit to sell at around the current price of US$297. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Meta Platforms 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!

insider-trading-volume
NasdaqGS:META Insider Trading Volume October 30th 2023

I will like Meta Platforms better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Meta Platforms Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Meta Platforms shares. In total, insiders dumped US$6.4m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Meta Platforms

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Meta Platforms insiders own about US$106b worth of shares (which is 14% 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.

What Might The Insider Transactions At Meta Platforms Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Meta Platforms makes money, and is growing profits. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Meta Platforms. You'd be interested to know, that we found 1 warning sign for Meta Platforms and we suggest you have a look.

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 of direct interests only, but not derivative transactions or indirect interests.

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