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The Independent Director of MoneyGram International, Inc. (NASDAQ:MGI), William Turner, Just Bought 105% More Shares

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MoneyGram International, Inc. (NASDAQ:MGI) shareholders (or potential shareholders) will be happy to see that the Independent Director, William Turner, recently bought a whopping US$1.5m worth of stock, at a price of US$5.65. That increased their holding by a full 105%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

See our latest analysis for MoneyGram International

MoneyGram International Insider Transactions Over The Last Year

In fact, the recent purchase by William Turner was the biggest purchase of MoneyGram International shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$6.30 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the MoneyGram International insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 354.15k shares worth US$2.0m. But insiders sold 49.19k shares worth US$495k. In the last twelve months there was more buying than selling by MoneyGram International insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does MoneyGram International 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. I reckon it's a good sign if insiders own a significant number of shares in the company. MoneyGram International insiders own about US$29m worth of shares. That equates to 5.1% of the company. 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 MoneyGram International Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in MoneyGram International shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MoneyGram International. At Simply Wall St, we've found that MoneyGram International has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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