Insiders At Maggie Beer Holdings See Good Returns After Buying Stock Worth AU$3.39m
Insiders who bought Maggie Beer Holdings Limited (ASX:MBH) stock lover the last 12 months are probably not as affected by last week’s 10% loss. Even after accounting for the recent loss, the AU$3.39m worth of stock purchased by them is now worth AU$4.06m or in other words, their investment continues to give good returns.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Maggie Beer Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Angelo Kotses for AU$2.8m worth of shares, at about AU$0.065 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$0.07. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Maggie Beer Holdings insiders decided to buy shares at close to current prices.
In the last twelve months Maggie Beer Holdings insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Maggie Beer Holdings
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Maggie Beer Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Maggie Beer Holdings insiders own 49% of the company, worth about AU$15m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Maggie Beer Holdings Insiders?
It doesn't really mean much that no insider has traded Maggie Beer Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Maggie Beer Holdings insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Maggie Beer Holdings. Be aware that Maggie Beer Holdings is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.