Insider Buying: The Macmahon Holdings Limited (ASX:MAH) Non-Executive Director Just Bought More Shares
Even if it's not a huge purchase, we think it was good to see that Alexander Ramlie, the Non-Independent Non-Executive Director of Macmahon Holdings Limited ( ASX:MAH ) recently shelled out AU$53k to buy stock, at AU$0.26 per share. While we're hesitant to get too excited about a purchase of that size, we do note this was a large proportional increase in their personal holding.
Check out our latest analysis for Macmahon Holdings
The Last 12 Months Of Insider Transactions At Macmahon Holdings
In fact, the recent purchase by Alexander Ramlie was the biggest purchase of Macmahon Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.22 (the recent price), an insider wanted to purchase shares. 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.
In the last twelve months Macmahon Holdings 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!
Macmahon 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.
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. Our data indicates that Macmahon Holdings insiders own about AU$9.3m worth of shares (which is 2.0% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Macmahon Holdings Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Macmahon 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 Macmahon Holdings. When we did our research, we found 3 warning signs for Macmahon Holdings (1 is a bit concerning!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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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