Insider Buys Additional US$350k In Motorcar Parts of America Stock
Investors who take an interest in Motorcar Parts of America, Inc. (NASDAQ:MPAA) should definitely note that the Director, Douglas Trussler, recently paid US$7.00 per share to buy US$350k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Motorcar Parts of America
The Last 12 Months Of Insider Transactions At Motorcar Parts of America
Notably, that recent purchase by Douglas Trussler is the biggest insider purchase of Motorcar Parts of America shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.01. 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 US$356k for 50.55k shares. But they sold 4.33k shares for US$62k. Overall, Motorcar Parts of America insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Motorcar Parts of America is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Motorcar Parts of America Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Motorcar Parts of America insiders own about US$8.2m worth of shares (which is 5.2% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Motorcar Parts of America Tell Us?
The recent insider purchase is 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Motorcar Parts of America insiders are reasonably well aligned, and optimistic for the 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 Motorcar Parts of America has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
Of course Motorcar Parts of America may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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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