Yahoo Finance Insider Buying: The MMA Offshore Limited (ASX:MRM) Independent Non-Executive Director Just Bought 99% More Shares
Even if it's not a huge purchase, we think it was good to see that Sue Murphy, the Independent Non-Executive Director of MMA Offshore Limited (ASX:MRM) recently shelled out AU$71k to buy stock, at AU$0.72 per share. Even though that isn't a massive buy, it did increase their holding by 99%, which is arguably a good sign.
View our latest analysis for MMA Offshore
MMA Offshore Insider Transactions Over The Last Year
In fact, the recent purchase by Sue Murphy was the biggest purchase of MMA Offshore shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.71 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Sue Murphy.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
MMA Offshore 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.
Does MMA Offshore Boast High Insider Ownership?
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. Our data suggests MMA Offshore insiders own 2.6% of the company, worth about AU$6.8m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
So What Does This Data Suggest About MMA Offshore Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that MMA Offshore insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for MMA Offshore (1 is potentially serious!) and we strongly recommend you look at these before investing.
But note: MMA Offshore 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, 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.
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