Insider Buyers At Maggie Beer Holdings Sitting On AU$1.5m Profit
Insiders who purchased Maggie Beer Holdings Limited (ASX:MBH) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. Even after accounting for the recent loss, the AU$2.79m worth of stock purchased by them is now worth AU$4.30m or in other words, their investment continues to give good returns.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Maggie Beer Holdings
The insider Angelo Kotses made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.8m worth of shares at a price of AU$0.065 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.085. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Maggie Beer Holdings insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.055. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
View our latest analysis for Maggie Beer Holdings
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Maggie Beer Holdings Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Maggie Beer Holdings. Specifically, insider Angelo Kotses bought AU$2.8m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Maggie Beer Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Maggie Beer Holdings insiders own 45% of the company, worth about AU$16m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Maggie Beer Holdings Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Maggie Beer Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Maggie Beer Holdings (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.