Insider Buying: The Myer Holdings Limited (ASX:MYR) CEO, MD & Director Just Bought 15% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Myer Holdings Limited (ASX:MYR) CEO, MD & Director, John King, recently bought AU$54k worth of stock, for AU$0.36 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 15%.
See 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. We do like to see buying, but this purchase was made at well below the current price of AU$0.39. 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.
While Myer Holdings insiders bought shares during the last year, they didn't sell. Their average price was about AU$0.27. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership of Myer Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Myer Holdings insiders own 1.8% of the company, worth about AU$5.3m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Myer Holdings Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Myer Holdings stock. 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 found 1 warning sign for Myer Holdings that deserve your attention before buying any shares.
But note: Myer Holdings 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. 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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