Bullish Maxim Power Insiders Loaded Up On CA$2.3m Of Stock
Multiple insiders secured a larger position in Maxim Power Corp. (TSE:MXG) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Maxim Power
Maxim Power Insider Transactions Over The Last Year
The Independent Vice Chairman & Lead Independent Director W. Wilson made the biggest insider purchase in the last 12 months. That single transaction was for CA$2.0m worth of shares at a price of CA$3.50 each. We do like to see buying, but this purchase was made at well below the current price of CA$4.54. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid CA$2.3m for 639.16k shares. But insiders sold 22.32k shares worth CA$88k. In total, Maxim Power insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Maxim Power is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Maxim Power Insiders Traded Recently?
We have seen a bit of insider selling at Maxim Power, over the last three months. The selling netted CA$22k for VP of Finance & Controller Kevin Dyck. But at least we saw CA$12k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Does Maxim Power 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. We usually like to see fairly high levels of insider ownership. Maxim Power insiders own about CA$90m worth of shares. That equates to 39% 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.
So What Do The Maxim Power Insider Transactions Indicate?
Our data shows a little more insider selling than buying in the last three months. But the net divestment is not enough to concern us at all. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Maxim Power and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Maxim Power. In terms of investment risks, we've identified 1 warning sign with Maxim Power and understanding this should be part of your investment process.
But note: Maxim Power 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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