In This Article:
Investors who take an interest in Methanex Corporation (TSE:MX) should definitely note that the Independent Director, James Bertram, recently paid CA$60.58 per share to buy CA$193k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 15%.
See our latest analysis for Methanex
Methanex Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Nojan Abrary bought CA$509k worth of shares at a price of CA$63.33 per share. That means that even when the share price was higher than CA$60.65 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Methanex insiders bought shares during the last year, they didn't sell. The average buy price was around CA$56.31. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Methanex Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Methanex insiders own about CA$24m worth of shares. That equates to 0.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Methanex Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Methanex insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Methanex and understanding these should be part of your investment process.