How Many McBride plc (LON:MCB) Shares Did Insiders Buy, In The Last Year?
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in McBride plc (LON:MCB).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for McBride
McBride Insider Transactions Over The Last Year
The Independent Non-Executive Chairman of the Board Jeffrey Nodland made the biggest insider purchase in the last 12 months. That single transaction was for UK£69k worth of shares at a price of UK£0.83 each. That implies that an insider found the current price of UK£0.86 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the McBride insiders decided to buy shares at close to current prices.
While McBride insiders bought shares during the last year, they didn't sell. Their average price was about UK£0.66. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
McBride 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.
McBride Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at McBride. We can see that Independent Non-Executive Chairman of the Board Jeffrey Nodland paid UK£69k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of McBride
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests McBride insiders own 0.6% of the company, worth about UK£851k. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
What Might The Insider Transactions At McBride Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that McBride insiders are expecting a bright future. 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. You'd be interested to know, that we found 2 warning signs for McBride and we suggest you have a look.
Of course McBride 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.
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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