Anyone interested in Jumia Technologies AG (NYSE:JMIA) should probably be aware that the Executive VP of Finance & Operations and Member of Management Board, Antoine Maillet-Mezeray, recently divested US$142k worth of shares in the company, at an average price of US$7.09 each. On the bright side, that sale was only 6.7% of their holding, so we doubt it's very meaningful, on its own.

The Last 12 Months Of Insider Transactions At Jumia Technologies

Notably, that recent sale by Antoine Maillet-Mezeray is the biggest insider sale of Jumia Technologies shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$7.10, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 6.7% of Antoine Maillet-Mezeray's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Jumia Technologies Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Jumia Technologies insiders own about US$5.5m worth of shares (which is 0.6% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Jumia Technologies Insider Transactions Indicate?

An insider hasn't bought Jumia Technologies stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

But note: Jumia Technologies 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.

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.