Reports revealed that the Insiders at Formula One Group (FWONK, Financial) sold off a large number of shares worth around $26 million, casting a shadow of doubt over the stock's current valuation. Over the past 52 weeks, an insider named John Malone executed the most substantial sale, offloading $24 million in shares at $71.24 each, slightly below the recent trading price of $77.27.This action suggests that insiders might perceive the stock's lower price as fair value, possibly indicating skepticism about the current higher market valuation.

Notably, no insider purchases were reported over the last year, which could be an alarming signal to investors. However, the bulk of sales, about $1.6 million in the previous month alone, highlights a potentially cautious or bearish outlook from insiders, as they did not experience buying despite the price dip.

While insider activity is just one hint in investment decision-making, the substantial ownership of 2.9% by insiders, valued at approximately $519 million, generally aligns their interests with those of shareholders. However, the recent selling trend might prompt investors to delve deeper into the financial and strategic positioning of Formula One Group before making further investment decisions.

This article first appeared on GuruFocus.