Even if it's not a huge purchase, we think it was good to see that Simon Columb Kelly, the Independent Non-Executive Director of MA Financial Group Limited (ASX:MAF) recently shelled out AU$69k to buy stock, at AU$6.89 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
MA Financial Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Founder & Group Vice Chairman Andrew Pridham for AU$1.8m worth of shares, at about AU$3.65 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$6.82), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid AU$2.0m for 531.50k shares. On the other hand they divested 274.59k shares, for AU$1.3m. In the last twelve months there was more buying than selling by MA Financial Group insiders. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does MA Financial Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that MA Financial Group insiders own 44% of the company, worth about AU$449m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At MA Financial Group Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about MA Financial Group. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for MA Financial Group you should be aware of.
But note: MA Financial 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.
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. 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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