Yahoo Finance Bullish Meeka Metals Insiders Loaded Up On AU$4.19m Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in Meeka Metals Limited (ASX:MEK). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
Check out our latest analysis for Meeka Metals
The Last 12 Months Of Insider Transactions At Meeka Metals
In the last twelve months, the biggest single purchase by an insider was when insider Hugh Gordon bought AU$2.7m worth of shares at a price of AU$0.053 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.038). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Hugh Gordon was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid AU$4.2m for 89.72m shares. On the other hand they divested 1.17m shares, for AU$50k. Overall, Meeka Metals insiders were net buyers during the last year. The average buy price was around AU$0.047. These transactions suggest that insiders have considered the current price attractive. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Meeka Metals insiders own 24% of the company, worth about AU$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Meeka Metals Insiders?
The fact that there have been no Meeka Metals insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Meeka Metals and their transactions don't cause us concern. 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. At Simply Wall St, we've found that Meeka Metals has 5 warning signs (3 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
But note: Meeka Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.
