Yahoo Finance Have Insiders Been Selling Mirvac Group (ASX:MGR) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Mirvac Group (ASX:MGR).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
View our latest analysis for Mirvac Group
Mirvac Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when CEO, MD & Director Susan Lloyd-Hurwitz sold AU$954k worth of shares at a price of AU$2.32 per share. That means that even when the share price was below the current price of AU$2.66, an insider wanted to cash in some shares. Even though it doesn’t necessarily mean anything, that’s certainly not a positive sign, in our book. As a general rule we consider it to be discouraging when insiders are selling below the current price. We note that the biggest single sale was only 16.2% of Susan Lloyd-Hurwitz’s holding. The only individual insider seller over the last year was Susan Lloyd-Hurwitz. Notably Susan Lloyd-Hurwitz was also the biggest buyer, having purchased AU$467k worth of shares.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Mirvac Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Mirvac Group insiders own 0.2% of the company, worth about AU$18m. 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 Mirvac Group Insider Transactions Indicate?
The fact that there have been no Mirvac Group insider transactions recently certainly doesn’t bother us. Still, the insider transactions at Mirvac Group in the last 12 months are not very heartening. But it’s good to see that insiders own shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Mirvac Group.
But note: Mirvac Group 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.
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