CEO, President & Director John Hewitt Just Bought 5.2% More Shares In Matrix Service Company (NASDAQ:MTRX)
Investors who take an interest in Matrix Service Company (NASDAQ:MTRX) should definitely note that the CEO, President & Director, John Hewitt, recently paid US$6.99 per share to buy US$105k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.2%.
See our latest analysis for Matrix Service
The Last 12 Months Of Insider Transactions At Matrix Service
In fact, the recent purchase by John Hewitt was the biggest purchase of Matrix Service shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.84). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Matrix Service insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Matrix Service is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Matrix Service
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 indicates that Matrix Service insiders own about US$6.1m worth of shares (which is 3.3% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Matrix Service Insiders?
It is good to see recent purchasing. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Matrix Service insiders are reasonably well aligned, and optimistic for the 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. You'd be interested to know, that we found 1 warning sign for Matrix Service and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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.
