In the last year, many MicroStrategy Incorporated (NASDAQ:MSTR) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for MicroStrategy

MicroStrategy Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Senior EVP & CFO, Andrew Kang, sold US$1.5m worth of shares at a price of US$260 per share. That means that an insider was selling shares at slightly below the current price (US$409). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 32% of Andrew Kang's stake.

MicroStrategy 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like MicroStrategy better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

MicroStrategy Insiders Are Selling The Stock

The last three months saw significant insider selling at MicroStrategy. Specifically, Senior EVP & CFO Andrew Kang ditched US$1.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

Many investors like to check how much of a company is owned by 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. MicroStrategy insiders own about US$8.2b worth of shares (which is 9.3% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About MicroStrategy Insiders?

An insider sold MicroStrategy shares recently, but they didn't buy any. 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. Every company has risks, and we've spotted 3 warning signs for MicroStrategy you should know about.