Yahoo Finance Insider Buying: The Mitchell Services Limited (ASX:MSV) Executive Chairman Just Bought AU$53k Worth Of Shares
Even if it's not a huge purchase, we think it was good to see that Nathan Mitchell, the Executive Chairman of Mitchell Services Limited (ASX:MSV) recently shelled out AU$53k to buy stock, at AU$0.53 per share. However, we do note that it only increased their holding by 0.3%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Mitchell Services
Mitchell Services Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Chairman Nathan Mitchell was not their only acquisition of Mitchell Services shares this year. Earlier in the year, they paid AU$0.60 per share in a AU$190k purchase. That means that an insider was happy to buy shares at above the current price of AU$0.49. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Nathan Mitchell. Notably Nathan Mitchell was also the biggest seller.
Nathan Mitchell bought a total of 418.99k shares over the year at an average price of AU$0.59. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Mitchell Services 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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mitchell Services insiders own about AU$27m worth of shares. That equates to 27% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Mitchell Services Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Mitchell Services insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Mitchell Services and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
