Don't Ignore The Insider Selling In MediaAlpha

Some MediaAlpha, Inc. (NYSE:MAX) shareholders may be a little concerned to see that the Co-Founder, Eugene Nonko, recently sold a substantial US$1.2m worth of stock at a price of US$10.02 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.0%. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. MediaAlpha Insider Transactions Over The Last Year Notably, that recent sale by Eugene Nonko is the biggest insider sale of MediaAlpha shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$9.10. So it may not tell us anything about how insiders feel about the current share price. In total, MediaAlpha insiders sold more than they bought over the last year. 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! Check out our latest analysis for MediaAlpha 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. Does MediaAlpha Boast High Insider Ownership? Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 9.3% of MediaAlpha shares, worth about US$53m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. So What Does This Data Suggest About MediaAlpha Insiders? An insider sold MediaAlpha shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, MediaAlpha makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for MediaAlpha (1 is concerning!) that we believe deserve your full attention. But note: MediaAlpha 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.