Yahoo Finance Insider Spends US$874k Buying More Shares In Motorcar Parts of America
Those following along with Motorcar Parts of America, Inc. (NASDAQ:MPAA) will no doubt be intrigued by the recent purchase of shares by Douglas Trussler, Director of the company, who spent a stonking US$874k on stock at an average price of US$5.83. That increased their holding by a full 150%, 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 Motorcar Parts of America
Motorcar Parts of America Insider Transactions Over The Last Year
In fact, the recent purchase by Douglas Trussler was the biggest purchase of Motorcar Parts of America shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (US$6.59), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 283.74k shares for US$1.8m. On the other hand they divested 11.67k shares, for US$99k. In total, Motorcar Parts of America insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Motorcar Parts of America
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 4.4% of Motorcar Parts of America shares, worth about US$5.3m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Motorcar Parts of America Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Motorcar Parts of America stock. While it's good to be aware of 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. At Simply Wall St, we've found that Motorcar Parts of America has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
Of course Motorcar Parts of America 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
