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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Maggie Beer Holdings Limited (ASX:MBH), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
We've discovered 2 warning signs about Maggie Beer Holdings. View them for free.
Maggie Beer Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Susan Thomas bought AU$541k worth of shares at a price of AU$0.053 per share. That means that an insider was happy to buy shares at around the current price of AU$0.058. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
Maggie Beer Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!
Check out 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).
Are Maggie Beer Holdings Insiders Buying Or Selling?
Over the last three months, we've seen a bit of insider buying at Maggie Beer Holdings. Independent Non-Executive Director Hugh Robertson shelled out AU$9.9k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Maggie Beer Holdings insiders own 30% of the company, worth about AU$6.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.