Have Motorcar Parts of America, Inc. (NASDAQ:MPAA) Insiders Been Selling Their Stock?

We noticed that the Motorcar Parts of America, Inc. (NASDAQ:MPAA) Independent Lead Director, Joseph Ferguson, recently sold US$62k worth of stock at US$14.42 per share. It may not be a huge sale, but it reduced their holding size by 19%, hardly encouraging.

Check out our latest review for Motorcar Parts of America

The Last 12 Months Of Insider Transactions In Motorcar Parts Of America

Notably, Joseph Ferguson’s recent sale was the largest insider sale of Motorcar Parts of America parts we’ve seen in the last year. So what is clear is that an insider sees fit to sell at around the current price of US$13.41. We generally don’t like to see insider selling, but the lower the selling price, the more concerned we are. Since the sell-off took place around current prices, it makes us a bit cautious but it is not a major concern.

In total, insiders sold more shares of Motorcar Parts of America than they bought, over the past year. The chart below shows insider transactions (by companies and individuals) over the past year. By clicking on the graph below, you can see the specific details of each insider transaction!

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NasdaqGS:MPAA Insider Trading Volume as of 18th November 2022

I would prefer Motorcar Parts of America if I could see some big insider buys. While we wait, check this out Free list of growing companies with multiple, recent, insider buying.

Insider Ownership Of America’s Motorcar Parts

Looking at the total insider shareholding in a company can help inform your view of whether they are well aligned with common shareholders. I think it’s a good sign if insiders own a large number of shares in the company. Motorcar Parts of America insiders appear to own 5.0% of the company, which is worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. This certainly suggests a reasonable level of alignment.

So What Does Motorcar Parts of America Indicate Insider Transactions?

An insider sold shares of Motorcar Parts of America recently, but they didn’t buy anything. Zooming out, the long-term picture does not give us much comfort. Insider ownership is not particularly high, so this analysis makes us cautious about the company. We will exercise some caution before buying! In addition to knowing about the insider transactions that occur, it is useful to identify the risks that Motorcar Parts of America faces. To help with this, we discovered 2 warnings (1 should not be ignored!) that you should know before buying any shares in Motorcar Parts of America.

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Of course Motorcar Parts of America may not be the best stock to buy. So you might want to see it Free collection of quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently consider open market transactions and private dispositions, but not derivative transactions.

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Find out if Motorcar Parts of America is potentially over- or under-priced by checking out our comprehensive review, which includes fair value estimates, risks and caveats, dividends, insider transactions and financial health.

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This Simply Wall St article is general. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals, or your financial situation. We aim to bring you long-term focused analysis driven by primary data. Note that our review may not factor in the company’s latest price-sensitive or material quality announcements. Simply Wall St has no position in any of the stocks mentioned.


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