Mativ Holdings, Inc. (NYSE:MATV) shareholders (or potential shareholders) will be happy to see that the CEO, President & Director, Julie Schertell, recently bought a whopping US$517k worth of stock, at a price of US$23.93. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 15%.
Mativ Holdings Insider Transactions Over The Last Year
The Independent Director Jeffrey Keenan made the biggest insider purchase in the last 12 months. That single transaction was for US$585k worth of shares at a price of US$34.72 each. That means that even when the share price was higher than US$25.00 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Mativ Holdings insiders bought shares during the last year, they didn't sell. Their average price was about US$27.62. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Mativ Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Mativ Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.9% of Mativ Holdings shares, worth about US$26m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Mativ Holdings Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Mativ Holdings shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Mativ Holdings has 3 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.
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.
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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.
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