Yahoo Finance Bullish insiders bet US$958k on Methanex Corporation (TSE:MX)
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Methanex Corporation's (TSE:MX) case, it's fantastic news for 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.
View our latest analysis for Methanex
Methanex Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Vanessa James, sold CA$511k worth of shares at a price of CA$68.15 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$60.62. So it may not tell us anything about how insiders feel about the current share price. Vanessa James was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid CA$958k for 17.25k shares. But insiders sold 7.50k shares worth CA$511k. In total, Methanex insiders bought more than they sold over the last year. The average buy price was around CA$55.53. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Methanex
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.9% of Methanex shares, worth about CA$36m. 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?
It doesn't really mean much that no insider has traded Methanex shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Methanex and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Methanex and we suggest you have a look.
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, but not derivative transactions.
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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.
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