Insider Spends US$1.2m Buying More Shares In Mercury Systems
Mercury Systems, Inc. (NASDAQ:MRCY) shareholders (or potential shareholders) will be happy to see that the Independent Director, Orlando Carvalho, recently bought a whopping US$1.2m worth of stock, at a price of US$33.83. That increased their holding by a full 203%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
See our latest analysis for Mercury Systems
Mercury Systems Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President William Ballhaus for US$1.5m worth of shares, at about US$37.57 per share. That means that even when the share price was higher than US$34.25 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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.
Over the last year, we can see that insiders have bought 99.18k shares worth US$3.6m. But they sold 35.18k shares for US$1.8m. In total, Mercury Systems insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Mercury Systems is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Mercury Systems
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. We usually like to see fairly high levels of insider ownership. Insiders own 3.6% of Mercury Systems shares, worth about US$74m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Mercury Systems Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Mercury Systems shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Mercury Systems.
Of course Mercury Systems 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 of direct interests only, but not derivative transactions or indirect interests.
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