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RHI Magnesita N.V. (LON:RHIM) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 9.5% decline in the stock price. After accounting for the recent loss, the €54k worth of shares they purchased is now worth €65k, suggesting a good return on their investment.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for RHI Magnesita
RHI Magnesita Insider Transactions Over The Last Year
The Deputy Chairman & Senior Independent Director John Ramsay made the biggest insider purchase in the last 12 months. That single transaction was for UK£54k worth of shares at a price of UK£19.65 each. We do like to see buying, but this purchase was made at well below the current price of UK£23.52. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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).
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. Insiders own 7.2% of RHI Magnesita shares, worth about UK£79m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The RHI Magnesita Insider Transactions Indicate?
It doesn't really mean much that no insider has traded RHI Magnesita shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in RHI Magnesita and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with RHI Magnesita (including 1 which shouldn't be ignored).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.