Yahoo Finance Should You Take Comfort From Insider Transactions At MSL Solutions Limited (ASX:MPW)?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in MSL Solutions Limited (ASX:MPW).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for MSL Solutions
The Last 12 Months Of Insider Transactions At MSL Solutions
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman John Down bought AU$123k worth of shares at a price of AU$0.21 per share. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. We generally consider it a positive if insiders have been buying on market, even above the current price. Notably John Down was also the biggest seller, having sold AU$123k worth of shares.
In the last twelve months insiders purchased 875.17k shares for AU$179k. But they sold 585.05k for AU$123k. In the last twelve months there was more buying than selling by MSL Solutions insiders. They paid about AU$0.20 on average. This is nice to see since it implies that insiders might see value around current prices (around AU$0.10). The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does MSL Solutions Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 17% of MSL Solutions shares, worth about AU$4.2m. 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 MSL Solutions Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded MSL Solutions 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 MSL Solutions and their transactions don’t cause us concern. Of course, the future is what matters most. So if you are interested in MSL Solutions, you should check out this free report on analyst forecasts for the company.
But note: MSL Solutions 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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
