Some Manhattan Associates, Inc. (NASDAQ:MANH) shareholders may be a little concerned to see that the Executive Vice President of Professional Services - Americas, J. Gantt, recently sold a substantial US$1.0m worth of stock at a price of US$288 per share. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Manhattan Associates

In the last twelve months, the biggest single sale by an insider was when the President, Eddie Capel, sold US$11m worth of shares at a price of US$251 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$285. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 55% of Eddie Capel's stake.

In the last year Manhattan Associates insiders didn't buy any company stock. 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!

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Does Manhattan Associates Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Manhattan Associates insiders own 0.8% of the company, currently worth about US$136m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Manhattan Associates Insiders?

Insiders sold Manhattan Associates shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Manhattan Associates makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Manhattan Associates that deserve your attention before buying any shares.

But note: Manhattan Associates 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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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.