When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Microequities Asset Management Group Limited's (ASX:MAM) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Microequities Asset Management Group
The Independent Non Executive Director Alexander Abrahams made the biggest insider purchase in the last 12 months. That single transaction was for AU$194k worth of shares at a price of AU$0.84 each. That means that an insider was happy to buy shares at above the current price of AU$0.81. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Microequities Asset Management Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Microequities Asset Management Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Microequities Asset Management Group Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Microequities Asset Management Group. We can see that Independent Non Executive Director Alexander Abrahams paid AU$194k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Insider Ownership of Microequities Asset Management Group
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Microequities Asset Management Group insiders own about AU$79m worth of shares (which is 76% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Microequities Asset Management Group Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Microequities Asset Management Group. One for the watchlist, at least! 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. In terms of investment risks, we've identified 2 warning signs with Microequities Asset Management Group and understanding them should be part of your investment process.
Of course Microequities Asset Management Group 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, 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.