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Microsaic Systems plc (LON:MSYS) shareholders (or potential shareholders) will be happy to see that insider Gerard Brandon recently bought a whopping UK£9.0m worth of stock, at a price of UK£0.10. That purchase boosted their holding by 180%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Microsaic Systems Insider Transactions Over The Last Year
Notably, that recent purchase by Gerard Brandon is the biggest insider purchase of Microsaic Systems shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.0025). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
Happily, we note that in the last year insiders paid UK£22m for 221.00m shares. But insiders sold 5.35m shares worth UK£209k. In the last twelve months there was more buying than selling by Microsaic Systems insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Microsaic Systems is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Our data isn't picking up on much insider ownership at Microsaic Systems, though insiders do hold about UK£92k worth of shares. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Microsaic Systems Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Microsaic Systems insiders are expecting a bright 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. At Simply Wall St, we've found that Microsaic Systems has 5 warning signs (3 don't sit too well with us!) that deserve your attention before going any further with your analysis.
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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