Yahoo Finance Bullish Mainfreight Insiders Loaded Up On NZ$1.49m Of Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Mainfreight Limited's (NZSE:MFT) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Mainfreight
Mainfreight Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Group MD & Director Donald Braid for NZ$678k worth of shares, at about NZ$67.77 per share. That means that an insider was happy to buy shares at around the current price of NZ$69.48. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid NZ$1.5m for 21.70k shares. On the other hand they divested 10.72k shares, for NZ$799k. In the last twelve months there was more buying than selling by Mainfreight insiders. 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!
Mainfreight is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Mainfreight Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Mainfreight. Overall, two insiders shelled out NZ$315k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership Of Mainfreight
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Mainfreight insiders own about NZ$1.3b worth of shares (which is 18% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Mainfreight Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Mainfreight insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Of course, the future is what matters most. So if you are interested in Mainfreight, you should check out this free report on analyst forecasts for the company.
Of course Mainfreight may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
