Who Has Been Buying MyState Limited (ASX:MYS) Shares?
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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 we’ll take a look at whether insiders have been buying or selling shares in MyState Limited (ASX:MYS).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
View our latest analysis for MyState
The Last 12 Months Of Insider Transactions At MyState
Independent Non-Executive Director Andrea Waters made the biggest insider purchase in the last 12 months. That single transaction was for AU$93k worth of shares at a price of AU$4.67 each. That implies that an insider found the current (approximate) price enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. In any event it’s generally a positive if insiders are buying shares at around the current price.
Over the last year, we can see that insiders have bought 49.82k shares worth AU$233k. Overall, MyState insiders were net buyers last year. The average buy price was around AU$4.68. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of AU$4.72. 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
MyState Insiders Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at MyState. Independent Non-Executive Director Robert Gordon shelled out AU$22k for shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
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. From our data, it seems that MyState insiders own 3.1% of the company, worth about AU$13m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At MyState Tell Us?
We note a that there has been a tad more insider buying than selling, recently. But overall the difference isn’t worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders own shares in MyState and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in MyState, you should check out this free report on analyst forecasts for the company.
Of course MyState may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
