We wouldn't blame Morgan Stanley (NYSE:MS) shareholders if they were a little worried about the fact that Michael Pizzi, the Executive VP & Global Head of Technology and Operations recently netted about US$5.2m selling shares at an average price of US$216. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Morgan Stanley

The CEO & Chairman of the Board, Edward Pick, made the biggest insider sale in the last 12 months. That single transaction was for US$16m worth of shares at a price of US$164 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$219. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 just 12% of Edward Pick's stake.

Morgan Stanley insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Morgan Stanley 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. It's great to see that Morgan Stanley insiders own 0.2% of the company, worth about US$539m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Morgan Stanley Tell Us?

Insiders sold Morgan Stanley shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Morgan Stanley is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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.

But note: Morgan Stanley 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.