Independent Non-Executive Director David Whittle Just Bought 300% More Shares In Myer Holdings Limited (ASX:MYR)
Even if it's not a huge purchase, we think it was good to see that David Whittle, the Independent Non-Executive Director of Myer Holdings Limited (ASX:MYR) recently shelled out AU$57k to buy stock, at AU$0.28 per share. Even though that isn't a massive buy, it did increase their holding by 300%, which is arguably a good sign.
View our latest analysis for Myer Holdings
Myer Holdings Insider Transactions Over The Last Year
The insider Margaret Cattermole made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.22 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.29. 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 Myer Holdings insiders were buying shares, but not selling. The average buy price was around AU$0.26. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Myer Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Myer Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Myer Holdings insiders have about 1.8% of the stock, worth approximately AU$4.1m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.
So What Do The Myer Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Myer Holdings insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Myer Holdings. At Simply Wall St, we found 1 warning sign for Myer Holdings that deserve your attention before buying any shares.
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.
This article by Simply Wall St is general in nature. 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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